If a firm's use of labor obeys the law of diminishing returns, then:
a. it does not have enough time to hire or fire workers.
b. doubling the number of workers causes the firm's output to also double.
c. its marginal costs must be falling.
d. hiring additional workers adds less and less additional output.
d
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In an economy that has stationary production capacity:
A. GDP is zero B. Capital consumption (or depreciation) is zero C. Net investment is zero D. Gross investment is zero
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the formAVC = a + bQ + cQ2and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. 
If Straker Industries produces 20 units of output, what is estimated short-run marginal cost (SMC)?
A. $2,348 B. $1,348 C. $463.20 D. $171.40