The law of diminishing returns states that as a firm increases
A) all the inputs is uses, the marginal product of each of these inputs always decreases.
B) a variable input, with a given quantity of fixed inputs, the firm's marginal cost eventually decreases.
C) a variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.
D) a variable input, given the quantity of fixed inputs, the firm's average total cost will eventually decrease.
C
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If autonomous spending decreases, then
A) the expenditure multiplier means that equilibrium expenditure increases by a larger amount. B) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount. C) equilibrium expenditure does not change. D) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount. E) equilibrium expenditure decreases by the same amount.
A price ________ is a regulated ________ that must be set below the equilibrium price to have an effect
A) floor; price B) floor; quantity C) ceiling; price D) ceiling; quantity