The Law of Diminishing Returns States That If Increasing Quantities

question 37

Multiple Choice

The law of diminishing returns states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors,then

• A)the MP and the AP of the variable factor will eventually decrease.
• B)the AP will eventually decrease with constant MP.
• C)the MP will eventually decrease with constant AP.
• D)the AP will eventually decrease,but only if TP is held constant.
• E)TP will eventually begin to fall.

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Definitions:

Best Leadership Style

A theoretical concept suggesting there is an optimal way of leading people that maximizes their performance and satisfaction, which may vary depending on context and individual differences.

Significant Challenge

A substantial obstacle or difficulty that requires considerable effort or innovation to overcome.

Vroom-Jago Contingency Variables

Factors that influence the effectiveness of decision-making processes, based on the Vroom-Yetton-Jago decision-making model of leadership.

Decision Significance

The importance or impact that a decision has, often measured by the potential consequences or outcomes associated with making different choices.