The Version of the Law of Diminishing Returns That Applies

question 249

Multiple Choice

The version of the law of diminishing returns that applies to production

• A) implies that as we add more workers our output decreases.
• B) applies only in the short run.
• C) is true only when all inputs are variable.
• D) applies in the short and long run.

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Definitions:

Oregon And California Trails

Historic overland routes used in the 19th century by American settlers migrating west in search of land and opportunity.

Santa Fe Trail

A historic 19th-century transportation route that connected Missouri with Santa Fe, New Mexico, facilitating trade and migration.

Enterprising Merchant

Refers to a businessperson, particularly during historical periods, who takes financial risks to profit from trading goods, often across great distances.

Mexican Law

The legal system of Mexico, which is primarily based on Napoleonic civil law with influences from Spanish civil law and indigenous law.