The law of eventually diminishing marginal returns: (Points : 1) a. states that
ID: 1180318 • Letter: T
Question
The law of eventually diminishing marginal returns: (Points : 1)
a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns.
b. is a mathematical theorem that can be logically proved or disproved
c. is the rate at which one input may be substituted for another input in the production process
d. None of the above
c. equal to MPx/MPy
The marginal product is defined as: (Points : 1) a. the ratio of total output to the amount of the variable input used in producing the outputb. the incremental change in total output that can be produced by the use of one more unit of the variable input in the production process
c. the percentage change in output resulting from a given percentage change in the amount of the variable input X employed in the production process with Y
d. None of the above
Explanation / Answer
a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns.
b. the incremental change in total output that can be produced by the use of one more unit of the variable input in the production process
b. the marginal rate of technical substitution
e. a and c
d. total cost
c. if the amount of labor input (L) is increased by 1 percent, then output will increase by ?1 percent
b. relevant to decisions in which one or more inputs to the production process are fixed
b. all inputs are considered variable
c. a and b
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