To produce 150 units of output, a firm must use 3 employee-hours. To produce 300 units of output, the firm must use 8 employee-hours. Apparently, the firm is:
A. not using any fixed factors of production.
B. producing in the long run.
C. experiencing negative returns.
D. experiencing diminishing returns.
Answer: D
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Which of the following statements is true?
A) A nation's institution comprises of the rules and regulations in the nation, while a nation's culture comprises of the saving habits of its citizens. B) A nation's culture comprises of both the saving habits of its citizens and the rules and regulations in the nation. C) A nation's culture comprises of both the ongoing tax rate and the rules and regulations in the nation. D) A nation's culture comprises of the ongoing tax, while a nation's institutions comprises of the rules and regulations in the nation.
Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that
A) import quotas are an efficient way to redistribute income. B) each job saved is worth more than the cost imposed on consumers per job saved. C) each job saved is worth less than the cost imposed on consumers per job saved. D) tariffs are an efficient way to redistribute income to disadvantaged groups.