The Law of Diminishing Returns Explains Why

question 47

Multiple Choice

The law of diminishing returns explains why

• A)monopolies have a guaranteed profit margin
• B)short-run MC and AVC curves are U-shaped
• C)the production possibilities curve is bowed out
• D)long run supply curves are downward sloping
• E)total product is a straight line

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Definitions:

Negative Punishment

Negative punishment, a concept in behavioral psychology, involves the removal of a desirable stimulus following an unwanted behavior, aiming to decrease that behavior's occurrence.

Positive Punishment

Adding an undesirable stimulus to decrease the likelihood of a behavior occurring again.

Operant Conditioning

A learning process where behavior is modified through reinforcement or punishment.

Classical Conditioning

A method of acquiring knowledge through the linkage between an external stimulus and an innate stimulus, which yields a reactive behavior.