"Diminishing marginal returns" refer to a situation in which the
A) marginal cost of the next worker hired is less than the marginal cost of the previous worker hired.
B) average cost of the next worker hired is less than the average cost of the previous worker hired.
C) marginal product of the next worker hired is less than the marginal product of the previous worker hired.
D) average product of the next worker hired is less than the average product of the previous worker hired.
C
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The three fundamental economic questions of what, how, and for whom:
A) exist because of scarcity. B) are much more serious in a socialist system. C) are not serious in a capitalistic system. D) are not relevant in the industrialized world of today.
Heteroskedasticity means that
A) homogeneity cannot be assumed automatically for the model. B) the variance of the error term is not constant. C) the observed units have different preferences. D) agents are not all rational.