University of Louisiana, Lafayette - ECON 528 Module 1 Homework Assignment

University of Louisiana, Lafayette - ECON 528 Module 1 Homework Assignment.Started on Monday, 8 October 2018, 10:05 PM State Finished Completed on Monday, 8 October 2018, 10:51 PM Time taken 45 mins 58 secs Marks 15.00/20.00 Grade 7.50 out of 10.00 (75%) The law of diminishing marginal returns states that increases in the variable input reduce the total product. Select one: True False The correct answer is 'False'. We should use relatively more labor if we learn that the marginal product per dollar of labor expenditures is less than a marginal product per dollar of capital expenditures. Select one: True False The correct answer is 'False'. ECON528-850-ECON528-010- Question 3 Correct Mark 1.00 out of 1.00 Question 4 Correct Mark 1.00 out of 1.00 If a firm has increasing returns to scale, then increasing all inputs by 1% will increase output by more than 1%. Select one: True False The correct answer is 'True'. If production displays economies of scale, the long-run average cost curve is Select one or more: a. downward-sloping. b. below the long-run marginal cost curve. c. upward sloping. d. above the short-run average total cost curve. Your answer is correct. The correct answer is: downward-sloping. Question 5 Incorrect Mark 0.00 out of 1.00 Over time, more experienced workers will demand higher wage and therefore, will lead to an increased in the cost of production for the producers. Select one: True False The correct answer is 'False'. Question 6 Correct Mark 1.00 out of 1.00 Question 7 Correct Figure 12-6 Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. To maximize his profit, Jason should produce the rate of output indicated by point Select one or more: a. a b. b c. e d. d