What is the law of diminishing returns? Give a descriptive example
Please provide the best answer for the statement.
The law states that as additional units of a variable resource such as labor are added to a fixed resource such as capital, beyond some point the additional, or marginal, product attributable to each additional unit of the variable resource will decline. An example would be a factory assembly line. The capital (assembly line) is fixed. As more and more workers (variable inputs) are assigned to work on the assembly line, the output produced by each additional worker is likely to decline at some point. The reasons for this decline are that the assembly line equipment may be fully utilized and beyond some point of production additional workers would only cause problems for the existing workers. Productivity, output per work hour, would fall as more workers are added.
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Refer to the table above. Assume that the market for notebooks is in equilibrium. Which of the following is likely to happen if there is an increase in the school enrollment rate, other things remaining the same?
A) The equilibrium price and quantity remain unchanged. B) Both the equilibrium price and quantity of notebooks decrease. C) Both the equilibrium price and quantity of notebooks increase. D) The equilibrium price increases, but the equilibrium quantity of notebooks decreases.
A charter school is an independent _____ school with _____ financing
a. private; private b. public; public c. private; public d. public; private
If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic
a. True b. False Indicate whether the statement is true or false
A preference for policies that place limits on trade is called:
A. liberalization. B. free trade. C. protectionism. D. autarky.