The Point of Diminishing Marginal Productivity Is the Point Where

question 30

Multiple Choice

The point of diminishing marginal productivity is the point where

• A)the marginal product begins to fall at an increasing rate.
• B)average product has reached its maximum.
• C)marginal product has reached its maximum.
• D)the marginal product curve lies below the average product curve.
• E)the total product begins to fall.

---

Definitions:

Marginal Benefit

The additional satisfaction or value gained from consuming or producing one more unit of a good or service.

Tax Cost

The financial charges associated with taxation, including the actual tax payment as well as any related compliance or administrative expenses.

Resources Allocation

The process of distributing available resources among various competing needs and desires to achieve optimal efficiency.

Majority Voting

A process of making decisions where the choice that gets over fifty percent of the votes prevails.