The law of diminishing returns makes it clear that as more a ...

[RRMR]

The law of diminishing returns makes it clear that as more a variable input is employed, in the ________ the marginal product of the variable input eventually will ________.
 
  A) short run; rise
  B) long run; rise
  C) short run; fall
  D) long run; fall

Question 2

The principal-agent problem means that managers must
 
  A) find ways for managers to get people to buy stock in their company.
  B) devise compensation rules to induce principals to act in the best interest of agents.
  C) devise compensation rules to induce agents to act in the best interest of principals.
  D) find efficient agents who will negotiate fair compensation rules for a firm's principal managers.

[joshraies]

Answer to Question 1

C

Answer to Question 2

C

[RRMR]

Thank you

[joshraies]

No problemo