Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true?

• A) The law of diminishing returns states that beyond some point the marginal product of a variable resource continues to rise.
• B) The marginal product is the change in total output by adding one additional unit of a fixed input.
• C) Fixed costs are costs which vary with the output level.
• D) When marginal productivity of a variable input is falling then marginal costs of production must be rising.
• E) When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.

---

Definitions:

Gifted Kids

Children who exhibit a high level of capability in intellectual, creative, artistic, or leadership areas in comparison to their peers.

Several Decades

A period of many years, often used to describe a long time frame in history or a person’s life.

Grey Matter

Brain tissue that contains most of the brain's neuronal cell bodies and is involved in muscle control, sensory perception, and decision making.

Dendrites

The branched extensions of a neuron that receive signals from other neurons.