In the context of the neoclassical growth model, which of the following does NOT explain the growth rates of countries which are initially poor?
A) nations which are below their steady-state growth paths will grow more slowly until they reach the steady state
B) the rate of return is higher in poor countries
C) capital flows from rich countries to poor countries
D) the passage of time allows poor countries to adopt the productive techniques of rich countries.
A
Economics
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The law of decreasing returns applies to
A) the long-run average cost curve. B) average total cost. C) diseconomies of scale. D) changes in a variable input with a given quantity of fixed inputs. E) changes in a fixed input with a given quantity of variable inputs.
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At the most profitable level of production, a firm's marginal cost will be _____ the market price.
(A) Set by (B) Less than (C) Equal to (D) Greater than
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