The law of diminishing returns
A. is completely invalid.
B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal product will decline.
C. states that if any two resources are combined, production will fall.
D. states that profit margins decline as output rises.
B. states that if units of a resource are added to a fixed proportion of other resources, eventually marginal product will decline.
You might also like to view...
The trade balance must equal the level of private and public saving in the country
Indicate whether the statement is true or false
Equilibrium gross domestic product (GDP) in the short run is determined at the point where
A. gross domestic production equals aggregate demand. B. the rate of unemployment equals zero. C. domestic production equals domestic consumption. D. imports equal exports.