State the law of diminishing marginal returns
What will be an ideal response?
As more units of a variable input are used in conjunction with a fixed input, the extra output of the variable input will eventually begin to decrease and continue to decrease as more units are used.
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In Table 1, Tony's income elasticity of demand for pizzas is
A) 0. B) less than zero. C) greater than 1.0. D) 1.0.
The fundamental goal of a firm or a business is to
A) produce the largest number of output units possible. B) employ labor in the most socially responsible manner possible. C) organize the factors of production and take risks. D) earn the highest possible returns.
The largest merger in the history of the world was between _______ and _________.
Fill in the blank(s) with the appropriate word(s).
The extra benefit resulting from a small increase in an activity is called the:
A. opportunity cost. B. marginal benefit. C. marginal cost. D. diminishing returns of the activity.