The law of diminishing return does not apply to a firm in the long run because in this phase:
a. all the factors of production are fixed.
b. there are no fixed factors of production.
c. there are some fixed and some variable factors of production.
d. the producer is required to produce a fixed level of output.
e. the producer can change the level of output only by changing the variable factors, fixed factors remaining unchanged.
b
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An information is beneficial to the decision-maker only when:
a. its marginal cost is zero. b. its marginal benefits exceeds its marginal cost. c. the possibility of inaccurate transmission is nullified. d. its marginal benefit is positive.
A scatter diagram of the position of the U.S. economy from 1972 through 2007 with the price level on the vertical axis and real GDP on the horizontal axis would show a movement generally toward the
a. northwest. b. northeast. c. southwest. d. southeast.