The Law of Diminishing Marginal Returns Explains the General Shape

question 21

Multiple Choice

The law of diminishing marginal returns explains the general shape of the firm's

• A) long-run cost curves.
• B) short-run cost curves.
• C) both short-run and long-run cost curves.
• D) The law of diminishing returns has nothing to do with cost curves.

---

Definitions:

Myelinated

Referring to nerve fibers that are covered with a protective, insulating layer called myelin, which helps increase the speed of neural signals.

Information Processing

A cognitive approach that likens the mind to a computer, emphasizing how information is taken in, stored, and retrieved by the brain.

Pheromones

Biologically produced odorants that convey information to other members of the species.

Smell-Based Communication

A form of communication that occurs through the detection and interpretation of olfactory signals, common among animals to convey information.