Diminishing marginal returns occur because

Diminishing marginal returns occur because
 a. All inputs are variable in the short-run
  b. All inputs are variable in the long-run
  c. Some inputs are fixed and some inputs are variable in the short-run
  d. None of the above

QUESTION 2

Property taxes are the product of the tax rate (T) and the assessed value (V). The total property tax collected in your city (P) is: P = TV. If the value of properties rise 4 and if Mayor and City Council reduces the property the tax rate by 2, what happens to the total amount of property tax collected? HINT: the percentage rate of change of a product is approximately the sum of the percentage rates of change.
 a. It rises 6 .
  b. It rises 4 .
  c. It rises 3 .
  d. It rises 2
  e. If falls 2.

QUESTION 3

A division of a firm is
 a. a logical sub-organization of the firm
 b. a level within the firm in which a large degree of autonomy is vested
  c. a level of hierarchy within a firm that defines the scope of a manager
  d. all of the above

QUESTION 4

When there are economies of scale,
 a. per-unit costs increase as output increases
  b. per-unit costs decrease as output increases
  c. per-unit costs are constant as output increases
  d. output does not affect per-unit costs

QUESTION 5

A linear demand for lake front cabins on a nearby lake is estimated to be: QD = 900,000 - 2P. What is the point price elasticity for lake front cabins at a price of P = 300,000? HINT: Ep = (Q/P)(P/Q)
 a. EP = -3.0
  b. EP = -2.0
  c. EP = -1.0
  d. EP = -0.5
  e. EP = 0

QUESTION 6

Data Driven Decision Making Kroger Groceries provides store managers flexibility to determine prices for a number of popular items they carry because demand is affected primarily by local conditions that managers are more aware of. To make sure managers use this discretion wisely, managers are rewarded with bonuses based on quarterly sales. With improvements in data collection and analysis, the quants in corporate headquarters can run many small experiments. Doing so allows them to understand nuanced patterns in consumer demand that had been un-noticed previously. How does this affect manager compensation?