What is true of marginal cost when marginal returns are decreasing?
a. It is negative and increasing.
b. It is negative and decreasing.
c. It is positive and increasing.
d. It is positive and decreasing.
e. It is positive and has a constant slope.
C
You might also like to view...
If the BLS included all marginally attached workers as being unemployed, the ________ would be __________
A. unemployment rate; higher B. labor force; unchanged C. labor force participation rate; lower D. unemployment rate; lower
If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe:
A) a decrease in marginal costs. B) an increase in the marginal product of labor. C) a decrease in the total fixed costs of production. D) an increase in the average total costs of production.