If average fixed cost exceeds average variable cost, a firm should shut down in the short run

If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by

A) $2,400. B) $6,000. C) $24,000. D) $60,000.

When a firm's marginal productivity declines as output increases, then the firm is experiencing

a. Diminishing returns to scale b. Constant returns to scale c. Increasing returns to scale d. Increasing marginal product