_____ occur(s)when more units of resources are required to produce each additional unit.

Question

Quizplus · Accepted Answer

The given description matches the concept of diminishing returns to specialization, where adding more units of resources results in a proportionate decrease in the output of each additional unit. This happens when there is a fixed capacity of one of the resources used in production, leading to inefficiencies and higher costs. Economies of scale refer to the phenomenon where the cost per unit decreases with an increase in production, Constant returns to specialization occur when the additional unit produced requires the same amount of resources as the previous units, and Positive-sum game refers to a situation where the gains of one player don't come at the cost of the other player's loss.

_____ Occur(s)when More Units of Resources Are Required to Produce