Marginal benefit is the benefit ________ one more unit of the good and ________ of the good increases.
A) of producing; increases as production
B) of producing; decreases as production
C) from consuming; increases as consumption
D) from consuming; decreases as consumption
Question 2
The prediction by the American Medical Association of a shortage of physicians by the year 2020 assumes
A) physicians' fees will not rise to a market clearing level.
B) physicians' services will be free goods.
C) physicians' services will no longer be scarce.
D) physicians will be willing to work for less income.
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A Production Function with Diminishing Marginal Product of Capital