The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the
A. the less an additional unit of capital adds to production.
B. less is produced.
C. the more an additional unit of capital adds to production.
D. less production is wasted.
Answer: A
You might also like to view...
Easy entry and exit ensure that perfectly competitive firms cannot make a long-run economic profit
Indicate whether the statement is true or false
Firms are more likely to find themselves in a prisoner's dilemma in sequential games as opposed to simultaneous games
Indicate whether the statement is true or false
The bond supply and demand framework is easier to use when analyzing the effects of changes in ________, while the liquidity preference framework provides a simpler analysis of the effects from changes in income,
the price level, and the supply of ________. A) expected inflation; bonds B) expected inflation; money C) government budget deficits; bonds D) government budget deficits; money
When deriving the production possibilities curve, it is assumed that
A) the amount of each good that is to be produced is fixed. B) the prices of resources are fixed along the curve. C) most resources can be used to produce only one good. D) resources are efficiently used.