"Diminishing Marginal Returns" Means That

question 141

Multiple Choice

"Diminishing marginal returns" means that:

• A) each additional unit of an input used will decrease output.
• B) each additional unit of an input used will increase output, but by smaller and smaller amounts.
• C) each additional unit of an input used will increase output by larger and larger amounts.
• D) the firm is maximizing profit.

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Definitions:

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