Q5. According to the law of diminishing returns, doubling the number of salespeople for a firm will most likely result in:

A)     decreasing the total sales of the firm as a result of competition amongst salespeople.

B)     increasing the total sales of the firm and reducing the average sales per salesperson.

C)     doubling the total sales of the firm.

Q6. The graph of two long run average total cost (LRATC) curves for a typical company appears below.

Based on this graph, which of the following statements is least accurate?

A)   The use of improved technology may have caused the company to move from LRATC₁ to LRATC₂.

B)   The ideal plant size is indicated by point M.

C)   At point L, the company is experiencing economies of scale.

Q7. At a fixed level of capital, output increases as the quantity of labor increases, but at a decreasing rate. This phenomenon is an example of:

A)   law of diminishing costs to labor.

B)   law of diminishing returns to labor.

C)   law of diminishing returns to capital.

Q8. Which of the following statements regarding diminishing marginal returns is most accurate?

A)   As the quantity produced rises, costs begin to rise at an increasing rate.

B)   As the quantity produced rises, costs begin to rise at a decreasing rate.

C)   The total cost curve arches downward.

Q9. Holding the quantity of labor constant, output increases as the quantity of capital increases, but at a decreasing rate. This phenomenon is most accurately described as:

A)   diminishing marginal costs of capital.

B)   diminishing average returns to capital.

C)   diminishing marginal product of capital.

答案和详解如下：

Q5. According to the law of diminishing returns, doubling the number of salespeople for a firm will most likely result in:

A)     decreasing the total sales of the firm as a result of competition amongst salespeople.

B)     increasing the total sales of the firm and reducing the average sales per salesperson.

C)     doubling the total sales of the firm.

Correct answer is B)

The law of diminishing returns states that as more of a resource is added to a production process, holding other resource use constant, increases in output will eventually decrease. Therefore, as more salespeople are added they will generate more sales at a decreasing rate. Total sales will increase and the average sales per salesperson will decrease.

Q6. The graph of two long run average total cost (LRATC) curves for a typical company appears below.

Based on this graph, which of the following statements is least accurate?

A)   The use of improved technology may have caused the company to move from LRATC₁ to LRATC₂.

B)   The ideal plant size is indicated by point M.

C)   At point L, the company is experiencing economies of scale.

Correct answer is A)

The use of improved technology would likely result in decreased costs and a downward shift in the LRATC. An upward shift in the LRATC curve may result from increased taxes, increased resource prices, or new government regulations, as these actions likely increase costs.

The other statements are true. Note: At point H, the firm is experiencing diseconomies of scale.

Q7. At a fixed level of capital, output increases as the quantity of labor increases, but at a decreasing rate. This phenomenon is an example of:

A)   law of diminishing costs to labor.

B)   law of diminishing returns to labor.

C)   law of diminishing returns to capital.

Correct answer is B)

The law of diminishing returns states that at some point, as more and more of a resource (e.g., labor) is devoted to a production process, holding the quantity of other inputs constant, the output increases, but at a decreasing rate.

Q8. Which of the following statements regarding diminishing marginal returns is most accurate?

A)   As the quantity produced rises, costs begin to rise at an increasing rate.

B)   As the quantity produced rises, costs begin to rise at a decreasing rate.

C)   The total cost curve arches downward.

Correct answer is A)

At production levels that are consistent with decreasing marginal returns, costs will increase at an increasing rate as production rises.

Q9. Holding the quantity of labor constant, output increases as the quantity of capital increases, but at a decreasing rate. This phenomenon is most accurately described as:

A)   diminishing marginal costs of capital.

B)   diminishing average returns to capital.

C)   diminishing marginal product of capital.

Correct answer is C)

The marginal product of capital is the change in output divided by a unit change in capital, holding labor constant. Diminishing marginal product of capital means that at a constant level of labor, output increases as capital is added, but at a decreasing rate.

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Q1. A

Q1. A