Micro test6

Micro test6 - 1) The law of diminishing returns explains...

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1 ) The law of diminishing returns explains diseconomies of scale. FALSE 2 ) Average fixed costs diminish continuously as output increases. TRUE 1 3 ) Economic cost can best be defined as:  (5pts) compensations that must be received by resource owners to insure  their continued supply. 4 ) A person receives a paper asset from a corporation that is a promise from the corporation to repay a loan at a fixed rate of interest. This type of asset is referred to as a: Bond 5 ) If a technological advance increases a firm's labor productivity, we would expect its: average total cost to fall. 6 ) Accounting profits are typically:  greater than economic profits because the former do not take implicit costs  into account.
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7 ) Shares of ownership in corporations are referred to as: Stocks 8 ) In a corporation, the interests of the owners, who seek to
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Micro test6 - 1) The law of diminishing returns explains...

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