Which of the Following Curves Should One Look at to Observe

question 109

Multiple Choice

Which of the following curves should one look at to observe the law of diminishing marginal returns?

• A)the average fixed cost curve
• B)the total fixed cost curve
• C)the marginal physical product curve
• D)the long run average total cost curve

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Definitions:

Price of A

Represents the amount of money required to purchase a specific item or service A.

Price of B

The cost or value assigned to good or service B in the market.

Equal Satisfaction

A situation or outcome in consumer behavior where an individual achieves the same level of utility or happiness from different combinations of goods or services.

Indifference Curve

A graph showing combinations of goods among which a consumer is indifferent, representing equal levels of satisfaction or utility.