Which of the following contributes to increasing marginal returns?
A) decreasing implicit costs
B) increasing explicit costs
C) specialization of labor
D) Both answers A and B are correct.
E) Both answers A and C are correct.
C
Economics
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Suppose a farmer is a price taker in soybeans with cost functions given by TC = .1q2 + 2q + 100 MC = .2q + 2 Suppose the farmer has to purchase a license for $50 per period in order to stay in business. In this case, its marginal cost function is
a. still MC = .2q + 2 b. MC = .2q + 50 c. MC = .2q + 52 d. MC = 50
Economics
The budget line is downward sloping, reflecting the fact that you must give up some of one good to get more of the other
a. True b. False Indicate whether the statement is true or false
Economics