If a Production Function Shows Declining Marginal Product of an Input

question 636

Multiple Choice

If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits

• A)diminishing profitability.
• B)increasing returns to scale.
• C)increasing marginal product.
• D)diminishing marginal product.

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Definitions:

Capital Contributions

Investments made by owners or shareholders into a company or partnership, increasing the company's equity.

Defendant-Tippee

A term used in securities law referring to a person who receives non-public, material information from an insider (the tipper) and then trades securities based on that information.

Criminally Liable

Being legally responsible for a crime, subject to criminal prosecution, and potentially, punishment.

Mens Rea

A legal principle that considers the intent of the mind to commit a crime; essential for establishing criminal liability.