The law of diminishing returns:
A) deals specifically with the diminishing marginal product of fixed input factors.
B) states that the marginal product of a variable factor must eventually decline as increasingly more is employed.
C) can be derived deductively.
D) states that as the quantity of a variable input increases, with the quantities of all other factors being held constant, the resulting output must eventually diminish.
Correct Answer:
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Q7: The production function Q = 0.25X0.5Y exhibits:
A)
Q8: A production function describes the relation between
Q9: When the slope of the average product
Q10: Total output is maximized when:
A) average product
Q11: The returns to scale characteristic of a
Q13: Right-angle shaped isoquants reflect inputs that are:
A)
Q14: A firm will maximize profits by employing
Q15: A new production function results following:
A) a
Q16: The marginal rate of technical substitution is:
A)
Q17: Marginal revenue product equals:
A) marginal revenue multiplied
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