Bill lives in Montana and likes to grow zucchini. He applies fertilizer to his crops twice during the growing season and notices that the second layer of fertilizer increases his crop, but not as much as the first layer. What economic concept best explains this observation?
A. The law of diminishing marginal utility.
B. The law of diminishing returns.
C. Return equalization principle.
D. The principal-agent problem.
Answer: B
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a. True b. False Indicate whether the statement is true or false