Diminishing marginal returns occurs when:
a. the marginal product of a variable input diminishes with each additional unit of the input.
b. the marginal product of a variable input increases with each additional unit of the input.
c. the marginal product of a fixed input diminishes with each additional unit of the input.
d. the marginal product of a fixed input increases with each additional unit of the input.
a
You might also like to view...
Which of the following are two components of the opportunity cost of using capital already owned by the firm?
A) economic profit and normal profit B) implicit rental rate and economic profit C) explicit rental rate and economic costs D) economic depreciation and forgone interest
Which of the following is NOT an accurate description of open market operations prior to 2008?
A) It was used to affect the market for bank reserves. B) It was used to control the federal funds rate. C) It involved buying and selling of short-term Treasury securities. D) It involved buying and selling long-term securities.