Output per worker is 50, the saving rate is 15 percent, the population is growing at one percent, depreciation is 9 percent, and the capital-labor ratio is 80. Consumption per worker is ________

Which of the following is true at the point where diminishing returns set in?

a. Both marginal product and marginal cost are at a maximum. b. Both marginal product and marginal cost are at a minimum. c. Marginal product is at a maximum and marginal cost is at a minimum. d. Marginal product is at a minimum and marginal cost is at a maximum.

When some benefits are received by those who are not involved in a private transaction, a negative externality occurs

a. True b. False Indicate whether the statement is true or false