The _____ function model is based on the microeconomics law of diminishing returns.
A)concave-upward
B)S-shaped demand
C)S-shaped response
D)marginal utility
E)concave-downward

Question

Quizplus · Accepted Answer

The concave-downward function model is based on the microeconomics law of diminishing returns, which states that as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease, leading to a concave-downward shape of the production function. The other options are not directly related to this law.

The _____ Function Model Is Based on the Microeconomics Law