When you have diminishing marginal returns to labor
A) variable costs remain constant as more output is produced.
B) variable costs fall as more output is produced.
C) variable costs rise as more output is produced.
D) fixed costs rise as more output is produced because you have to buy more equipment to compensate.
C
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Hundreds of speculators conclude in May that the coming summer's corn crop will be much lower and that the November corn price will be consequently much higher than most people expect
When they act on their beliefs in the futures market, they would strive to ________ corn futures, which would tend to ________ the price of corn futures. A) sell; reduce B) sell; raise C) buy, reduce D) buy; raise
You try to explain the number of IBM shares traded in the stock market per day in 2005. As an independent variable you choose the closing price of the share. This is an example of
A) simultaneous causality. B) invalid inference due to a small sample size. C) sample selection bias since you should analyze more than one stock. D) a situation where homoskedasticity-only standard errors should be used since you only analyze one company.