The Principle of Marginal Rate of Substitution States That the More

question 453

Multiple Choice

The principle of marginal rate of substitution states that the more chocolate Susan consumes in proportion to coffee, the coffee she is willing to substitute for another piece
Of chocolate.

• A)diminishing; less
• B)diminishing; more
• C)increasing; less
• D)increasing; more

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Definitions:

Waste Elimination

The process of identifying and removing unnecessary elements from processes or products to improve efficiency and reduce costs.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs.

Experiment

A scientific procedure undertaken to test a hypothesis, discover unknown effects, or demonstrate a known fact, usually under controlled conditions.

Business Practices

Established methods, protocols, or procedures followed by an organization in the conduct of its business.