The Law of Diminishing Marginal Returns

question 139

Multiple Choice

The law of diminishing marginal returns

• A)sets in because not all workers are equally productive.
• B)applies only in the short run.
• C)holds even when there are no fixed factors.
• D)ultimately explains why production displays diseconomies of scale.

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Definitions:

Lessee

an individual or entity who leases or rents property from a lessor, obtaining the right to use it according to the lease terms.

Merchant

An individual or company involved in the trade of goods, services, or commodities for profit.

Fungible

Items or assets that are interchangeable and of such a nature that one part or quantity may replace another equal part in paying a debt or settling a deal.

Cultivator Co-Op

A cooperative association formed by crop producers to collaborate in cultivation efforts and share resources or benefits.