Author Question: If a firm is experiencing diminishing marginal returns, a. total output decreases as all resources ... (Read 73 times)

lbcchick · **on:** Jun 30, 2018

If a firm is experiencing diminishing marginal returns,
a. total output decreases as all resources are increased
b. total output decreases as all resources are decreased
c. total output decreases as one variable resource is increased, other things constant
d. additional increments of output diminish as one variable resource is increased, other things constant
e. additional increments of output diminish as all variable resources are increased

Question 2

When a system of pollution rights is in effect, polluters have no economic incentive to reduce the amount of pollution they generate.
a. True
b. False