"Diminishing Marginal Returns" Means That

question 141

Multiple Choice

"Diminishing marginal returns" means that:

• A) each additional unit of an input used will decrease output.
• B) each additional unit of an input used will increase output, but by smaller and smaller amounts.
• C) each additional unit of an input used will increase output by larger and larger amounts.
• D) the firm is maximizing profit.

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Definitions:

Credit Union

A member-owned financial cooperative, providing savings, credit, and other financial services to its members.

Confidence Interval

A statistical range, with a certain probability, where a true population parameter is expected to lie.

Average Age

The sum of individual ages divided by the number of individuals in a given group, representing a central value of ages in that group.

First Word

The initial term or expression in a sequence of words, often carrying significant meaning or setting the tone for what follows.