The source of diminishing returns is
A. that when each worker is equally capable, each worker adds to production exactly the same as the previous one.
B. the fact that anytime you increase labor you get more output.
C. the efficiency that results from workers specializing in one aspect of production.
D. the inefficiency that results from the fact that capital is fixed.
Answer: D
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When access to a common property is unrestricted, why does the resulting social gain fail to be as large as possible? How can an entrance fee increase social gain in this situation?
What will be an ideal response?
Suppose a consumer purchases pizza and soft drinks. If pizza is measured on the vertical axis and soft drinks are measured on the horizontal axis, then the slope of the budget line is equal to:
A. the price of pizza divided by the price of soft drinks. B. the price of soft drinks divided by the price of pizza. C. the price of pizza divided by the price of soft drinks times negative one. D. the price of soft drinks divided by the price of pizza times negative one.