Author Question: The Law of Diminishing Marginal Returns states that: A) successive increases in inputs eventually ... (Read 113 times)

Tazate · **on:** Jun 29, 2018

The Law of Diminishing Marginal Returns states that:

A) successive increases in inputs eventually lead to less additional output.
B) successive increases in product prices lead to a fall in revenue.
C) the demand for a good decreases as the price of the good increases.
D) the net benefits of a perfectly competitive firm decrease as more firms enter the market.

Question 2

You notice that when the inflation rate increases, the interest rate tends to increase. This observation indicates that

A) there might be false causality between inflation and the interest rate.
B) higher inflation rates must cause a higher interest rate.
C) a scatter diagram of the inflation rate and the interest rate will show a positive relationshi