The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
A) the average physical product of the fixed inputs increases at an increasing rate.
B) the marginal physical product of the variable input decreases.
C) the total output decreases.
D) the marginal physical product of the variable input increases at a constant rate.
E) the marginal physical product of the variable input increases at a decreasing rate.
Correct Answer:
Verified
Q13: The below figure shows the various combinations
Q14: The below figure shows the various combinations
Q15: The below figure shows the various combinations
Q16: The below figure shows the various combinations
Q17: The below figure shows the various combinations
Q19: The below figure shows the various combinations
Q20: The below figure shows the various combinations
Q21: The figure given below shows cost curves
Q22: The below figure shows the various combinations
Q23: The below figure shows the various combinations
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents