The law of diminishing returns occurs because
A) the marginal product of an additional worker is greater than the marginal product of the previous worker.
B) the marginal product of a variable input, such as labor, depends in part on the amount of fixed inputs, such as capital.
C) total production decreases as more of the variable inputs are used.
D) adding more and more workers leads to a decrease in the quantity of capital.
B
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________ in the expected future domestic exchange rate causes the demand for domestic assets to shift to the right and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Which of these factors can explain the short recession experienced by the U.S. in 2001?
a. Terrorist attacks b. The stock market crash c. Bursting of the real estate bubble d. A rise in international oil prices e. Expenditure on war