The observation that after some point, successive equal size increases in a variable factor of production, such as labor, added to fixed factors of production, will result in smaller increases in output is the
A. streamlining production function.
B. law of diminishing marginal product.
C. theory of increasing marginal utility.
D. consumer equilibrium.
Answer: B
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Refer to the figure above. Calculate the total surplus in Lithasia under free trade
A) $150 B) $250 C) $325 D) $375
U.S. Gross National Product includes goods produced by:
A. foreign firms on U.S. soil. B. U.S. firms on foreign soil. C. foreign firms on foreign soil. D. None of these statements is true.
Marginal revenue product measures the:
A. amount by which the extra production of one more worker increases a firm's total revenue. B. decline in product price that a firm must accept to sell the extra output of one more worker. C. increase in total resource cost resulting from the hire of one extra unit of a resource. D. increase in total revenue resulting from the production of one more unit of a product.
When you have a job and your employer compensates you for your time with money, resulting in both of you being better off, it is an example of a voluntary exchange.
Answer the following statement true (T) or false (F)