The Property of Diminishing Marginal Product Means That, After a Point

question 46

Multiple Choice

The property of diminishing marginal product means that, after a point, when additional quantities of:

• A)a factor are added, output diminishes.
• B)both labor and capital are added, output diminishes.
• C)both labor and capital are added, the marginal product of labor diminishes.
• D)a factor are added when another factor remains fixed, the marginal product of the first factor diminishes.

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Definitions:

Environmental Problems

Issues affecting the natural environment, often caused by human activity, such as pollution, climate change, and biodiversity loss.

Property Rights

Legal rights that delineate the ownership and utilization of resources, including the right to transfer, use, or exclude others from use.

Profit Maximization

The process by which a business seeks to achieve the greatest possible profit with the least possible cost and risk.

Industrial Waste

Waste produced by industrial activities, including chemicals and by-products that can be hazardous to the environment and human health.