The law of diminishing marginal product holds so long as the input is not a Giffen good.
Answer the following statement true (T) or false (F)
False
Rationale: There are no such things as "Giffen goods" for inputs -- because there are no such things as income or wealth effects in the producer model.
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Refer to the table above. If the world price of trousers is $5 per pair, then which of the following statements is true?
A) All the four countries will import trousers. B) All the four countries will export trousers. C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers. D) Country B and Country C will export trousers, whereas Country A and Country D will import trousers.
An increase in autonomous consumption means that
A) the consumption function shifts down. B) the consumption function shifts up. C) the consumption function becomes steeper. D) the consumption function becomes less steep.