One reason that variable factors of production tend to show diminishing returns in the short run is that:

A. there is only so much that can be produced using additional variable inputs when some factors of production are fixed.
B. large firms cannot effectively manage their resources.
C. capital equipment is often idle in the short run.
D. the cost of employing additional resources increases as firms employ more of those resources.


Answer: A

Economics

You might also like to view...

The tobacco industry is an example of an oligopoly market structure

Indicate whether the statement is true or false

Economics

The production function shows

A) the incremental output gained by improving the production process.
B) the maximum output that can be produced from each possible quantity of inputs.
C) the technology used to produce output.
D) the total cost of producing a given quantity of output.

Economics

Recall the Application about the productivity of large infrastructure investments to answer the following question(s). According to the Application, what is the massive investment project did China recently embark on?

A. bullet trains B. irrigation C. stem cell research D. reforestation

Economics

Currently, about ________ of all health care spending is paid by individuals.

A. 3 percent. B. 45 percent. C. 89 percent. D. 10 percent.

Economics