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.

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.

The law of diminishing marginal returns means that when one uses more and more of an input:

Which of the following explains why the law of diminishing marginal returns occurs?APer-units costs for a firm increase as the firm builds successively larger plant sizes.BSuccessive units of a good yield lesser amounts of satisfaction to consumers.CAdditional variable resources crowd fixed resources.DWhen a firm reduces price to increase sales, additional revenue to the firm is less than the price.EWhen the price of a product is reduced, total revenue falls.

According to the Law of diminishing marginal returns,Group of answer choicesThe production function reaches a minimum point as more output is produced.The production function is relatively steeper at the initial levels of production.The production function is relatively flatter at the initial levels of production.The production function becomes increasingly steep as more output is produced.

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.