Diminishing Marginal Returns Means That

question 155

Multiple Choice

Diminishing marginal returns means that:

• A) each additional unit of an input will decrease output.
• B) each additional unit of an input will increase output, but by smaller and smaller amounts.
• C) each additional unit of an input will increase output by larger and larger amounts.
• D) the firm is maximizing profit.

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Definitions:

Social Science Theory

A framework of ideas and concepts that helps explain human behavior and societal interactions.

Reciprocal Relationship

A mutual relationship in which two or more entities influence or affect each other's development or behavior.

Internal Change Agents

Individuals within an organization who promote and facilitate change efforts, often by encouraging innovation and adaptation to new processes or cultures.

External Change Agents

Individuals or entities outside of an organization who are brought in to facilitate, drive, or implement change within the organization, often to improve performance or address specific challenges.