QUESTION 73 "What happens if a firm hires many more workers, holding other inputs constant?" O Marginal product goes up O Marginal product goes down Marginal product goes up or down, depending on capital O Marginal product does not change with the number of workers QUESTION 74 Why do decreases in interest rates cause people to save less? People prefer higher interest rates They cause people to substitute toward future consumption Interest rates are lower than they should be They cause people to substitute toward the present QUESTION 75 Which of the following is regarded as a source of inefficiency in monopolistic competition? The fact that price exceeds marginal cost O Full capacity O Product diversity The fact that long-run average cost is minimized QUESTION 76 Why is price regulation difficult for regulators of monopoly industries? O Prices are unknown O Costs are equal to revenues O Costs are below revenues The industry may be a natural monopoly
