The law of diminishing marginal returns means that when one uses more and more of an input:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aOutput will necessarily decrease.bOutput will eventually increase at a decreasing rate.cCosts will necessarily decrease.dCosts will eventually increase at a decreasing rate.
Question
The law of diminishing marginal returns means that when one uses more and more of an input:Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aOutput will necessarily decrease.bOutput will eventually increase at a decreasing rate.cCosts will necessarily decrease.dCosts will eventually increase at a decreasing rate.
Solution
The correct answer is: b. Output will eventually increase at a decreasing rate.
Here's why:
The law of diminishing marginal returns is an economic concept that shows that there is a point at which an additional input in the production process will not produce more output, or where the rate of output will begin to decrease. This happens when one factor of production (like labor or capital) is increased while others are held constant.
Initially, increasing one input (like labor) will increase output, but after a certain point, additional increases in that input will result in a slower rate of increase in output. This is because, without an increase in other inputs (like machinery or raw materials), additional labor becomes less and less productive. This is what is meant by "output will eventually increase at a decreasing rate".
Similar Questions
The law of diminishing marginal returns means that when one uses more and more of an input:
The law of diminishing marginal productivity states that, as more of a variable input is added to a fixed input, the:Question 5Answera.Marginal product of the variable input will eventually decrease.b.Total product will increase indefinitely.c.Average total cost will decrease.d.Fixed input will become variable.
According to the law of diminishing marginal returnsMultiple Choicethe additional product generated by additional units of an input will eventually diminish.the additional inputs necessary to produce an additional unit of output will diminish.employing additional inputs will diminish total product.total product will fall and then rise as additional units of an input are employed.
The law of diminishing returns implies that:a.a given percentage increase in all inputs leads to that same percentage increase in output.b.the proportional increase in output is larger than the underlying proportional increase in inputs.c.output increases at a rate less than the proportionate increase in inputs.d.none of these.
Which of the following statements best expresses the law of diminishing marginal returns?Multiple ChoiceThe same percentage increase in all inputs will result in a higher percentage increase in total output.As successive amounts of one resource (labour) are added to fixed amounts of other resources, beyond some point the resulting extra output will decline.Because large-scale production allows the realization of increasing returns to scale, the costs of production vary directly with the level of output.The same percentage increase in all inputs will result in a lower percentage increase in total output.Population growth automatically adjusts to that level at which the average product per worker will be at a maximum.
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