When the law of diminishing returns takes effect
A) firms must add increasingly more input if they are to maintain the same extra amount of output.
B) firms must add decreasingly more input if they are to maintain the same extra amount of output.
C) more input must be added in order to increase its output.
D) a firm must always try to add the same amount of input to the production process.
Correct Answer:
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Q1: The difference between the short-run and the
Q3: Assume a firm employs 10 workers and
Q4: Decreasing returns to scale
A)indicate that an increase
Q5: The marginal product of the variable input
A)is
Q6: The term Production Function refers to the
A)use
Q7: A firm that operates in Stage III
Q8: Stage III of the short-run Production Function
Q9: Which of the following indicates when Stage
Q10: Which of the following statements about the
Q11: Which of the following indicates when Stage
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