The Idea of Diminishing Returns to an Input in Production

question 25

Multiple Choice

The idea of diminishing returns to an input in production suggests that,if a local college adds more custodians,the marginal product of labor for the custodial staff will:

• A)increase at an increasing rate.
• B)increase at a decreasing rate.
• C)decrease.
• D)not change.

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Definitions:

Angiotensin II

A hormone that causes blood vessels to constrict, resulting in increased blood pressure, and stimulates the release of aldosterone from the adrenal glands.

Aldosterone Secretion

The release of aldosterone, a steroid hormone, from the adrenal cortex, which regulates sodium and potassium balance in the blood.

Vasodilator

A substance that causes blood vessels to expand, increasing blood flow and decreasing blood pressure.

Juxtaglomerular Apparatus

A structure in the kidney that helps regulate blood pressure and filtration rate through the secretion of renin in response to blood pressure changes.