The Law of Diminishing Marginal Returns States That as the Firm

question 7

Multiple Choice

The law of diminishing marginal returns states that as the firm uses more of _______, with a given quantity of _______, the _______ product of the variable input eventually diminishes.

• A) all inputs; capital; average
• B) a variable input; fixed inputs; average
• C) a fixed input; variable inputs; marginal
• D) a variable input; fixed inputs; marginal

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Definitions:

Maintenance Strategy

A planned approach for conducting upkeep and repairs of equipment, infrastructure, or systems to ensure their optimal working condition and longevity.

Breakdown Maintenance

Reactive maintenance performed after a machine or system fails in order to restore it to operating condition.