Diminishing marginal returns lead to diminishing returns A) ...

[luminitza]

Diminishing marginal returns lead to diminishing returns
 
  A) when marginal returns fall but remain positive.
  B) only in theory.
  C) when marginal returns become negative.
  D) when labor exceeds capital.

Question 2

As long as there is some substitution effect in response to a change in the relative price of a good, there will be an excess burden from a tax.
 
  a. True b. False

[billybob123]

Answer to Question 1

C

Answer to Question 2

a