The law of diminishing returns states that
A) as we continually add variable factors to a fixed amount of other resources, output eventually increases at a decreasing rate.
B) as we increase plant size, costs must diminish.
C) the additional output generated by the employment of additional units of a variable input eventually decline.
D) both a and c are correct.
Correct Answer:
Verified
Q190: Figure 8-14 The following question(s) refer(s) to
Q191: Sunk or "historical" costs are costs
A) associated
Q192: Which of the following is true?
A) Economic
Q193: Ron works for Betty at Betty's Pizza
Q194: Figure 8-14 The following question(s) refer(s) to
Q196: Which of the following factors would not
Q197: When a firm increases its plant size
Q198: Advantages of the corporate form of business
Q199: Figure 8-14 The following question(s) refer(s) to
Q200: Figure 8-14 The following question(s) refer(s) to
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