Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
a. the average physical product of the fixed inputs increases at an increasing rate.
b. the marginal physical product of the variable input decreases.
c. the total output decreases.
d. the marginal physical product of the variable input increases at a constant rate.
e. the marginal physical product of the variable input increases at a decreasing rate.
b
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A person who agrees to buy an asset at a future date is going
A) long. B) short. C) back. D) ahead.
"When workers have a relatively small quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity by a relatively large amount.". This statement
a. is an assertion that production functions have the property of constant returns to scale. b. is consistent with the view that capital is subject to diminishing returns. c. is inconsistent with the view that it is easier for a country to grow fast if it starts out relatively poor. d. All of the above are correct.