The per-worker production function flattens out due to ________
A) the negative relationship between price and quantity demanded
B) the positive relationship between price and quantity demanded
C) the diminishing marginal product of capital
D) an increase in the general level of prices
C
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Refer to the scenario above. Which of the following is true if Sarah is optimizing in levels?
A) An optimizer will rent the hotel for three days if the total benefit of staying for three days exceeds the total benefits of staying for two days. B) An optimizer will rent the hotel room for three days if the cost of staying for two days exceeds the cost of staying for three days. C) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days. D) An optimizer will rent the hotel room for three days if the net benefit of staying for the third day is negative.
Because of increasing marginal cost, most supply curves
A) are horizontal. B) are vertical. C) have a negative slope. D) have a positive slope.