Consider the following short-run production function: q = 5 - 1/3 . At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?
What will be an ideal response?
MP = 10L - . Marginal product peaks when L = 5 and equals zero when L = 10. Thus diminishing marginal returns begin when L = 5, and diminishing returns begin when L = 10.
Economics
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In one year, a weapons plant can manufacture either 1,000 more guns or 50 more tanks. The plant's opportunity cost of an extra gun is approximately
a. 50 tanks b. 20 guns c. 20 tanks d. 1/20 of a tank e. 1/50 of a tank
Economics
Figure 4-25
Refer to . After the tax is levied, producer surplus is represented by area
a.
A.
b.
A + B + C.
c.
D + E + F.
d.
F.
Economics