Diminishing marginal returns occur when
A. all inputs are decreased.
B. one input is increased and the others are held constant.
C. all inputs are increased.
D. one input is decreased while the other is increased.
Answer: B
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Inflation is a rise in the price level. If it is caused primarily by a decrease in aggregate supply, then we refer to it as
a. demand-push inflation b. cost-pull inflation c. demand-pull inflation d. cost-push inflation e. supply-push inflation
The difference between the total revenue and total costs for a bank shows its: a. economic profit
b. accounting profit. c. non-performing assets. d. total assets.
Each year, most U.S. companies bring a Certified Public Accountant (CPA) firm to audit their books. This is an example of
A. the benefits of decentralization or outsourcing. B. separation of decision management and decision control. C. a lack of trust between the companies and the managers. D. the impact of influence costs.
Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D3?
A. A decrease in the price of tea B. An increase in consumer incomes C. A technological improvement in the production of coffee D. A decrease in the price of sugar