Q1. The law of diminishing returns states that for a given production process, as more and more of a resource (such as labor) are added, holding the quantities of other resources fixed: A) output increases at a decreasing rate. B) cost declines at a decreasing rate. C) cost declines at an increasing rate.
Q2. The law of diminishing returns states that at some point: A) as less of a resource are devoted to production, holding the quantity of other inputs constant, the output will decrease, but at an increasing rate. B) as more of a resource is devoted to production, holding the quantity of other inputs constant, the output will increase, but at a decreasing rate. C) as more of a resource is devoted to production, holding the quantity of other inputs constant, at some point output will begin to decrease.
Q3. Which of the following is least accurate with regard to the long-run and the short-run? A) In the short run, only plant size is fixed. B) Long-run cost curves pertain to plants of different sizes. C) In the long-run, all costs are variable.
Q4. Based on the concept of diminishing returns, as the quantity of output increases, the short-run marginal costs of production eventually: A) fall at a decreasing rate. B) rise at a decreasing rate. C) rise at an increasing rate.
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发表于 2008-12-31 15:18
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