The law of diminishing return holds that as additional increments of resources are:
a. added to a certain purpose, the marginal benefit from those additional increments will remain flat.
b. removed to a certain purpose, the marginal benefit from those additional increments will decline.
c. added to a certain purpose, the marginal benefit from those additional increments will incline.
d. added to a certain purpose, the marginal benefit from those additional increments will decline.
d. added to a certain purpose, the marginal benefit from those additional increments will decline.
You might also like to view...
Economies of scale refer to the range of output over which
A) marginal cost exceeds average cost. B) the long-run average cost falls as output increases. C) the marginal product of labor diminishes. D) the long-run average cost is less than the short-run average total cost.
In 1906, the Hepburn Act
(a) Required the federal government to set "fair rates" for customers regardless of geographical location. (b) Required the federal government to set rates that promised a positive rate of return to railroads. (c) Granted the power to set maximum rates in the railroad industry to the federal government. (d) Granted the power to set maximum rates in the railroad industry to the leading railroad tycoons.
When product A is a substitute for product B, the cross-price elasticity of demand for products A and B will be _____
a. unity b. negative c. positive d. decreasing e. increasing
Which of the following is true?
a. Automated production processes are generally adopted regardless of whether they reduce costs. b. Automated production processes eliminate jobs and, thereby, endanger our future living standards. c. Cost-reducing automated production techniques will expand output directly and/or release scarce resources for the expansion of output in other areas. d. Use of the most advanced technology will always minimize the cost of a productive activity.