Diminishing marginal returns implies that:

A. marginal product is decreasing.
B. marginal product is increasing.
C. marginal product is constant.
D. marginal product may be increasing or decreasing.

Answer: A

Economics

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If George's MPS is 0.75 and he earns an additional $1,000, how much would he spend?

a. $250 b. $750 c. $1,333 d. $4,000

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