When an Additional Unit of a Variable Input Adds Less

question 297

Multiple Choice

When an additional unit of a variable input adds less to total product than the previous unit,the firm has:

• A)increasing returns.
• B)diminishing marginal returns.
• C)diminishing total returns.
• D)diminishing marginal returns and diminishing total returns.

Understand the basic concepts and mechanisms of fisheries management.

Comprehend the role and implications of Total Allowable Catch (TAC) in fisheries sustainability.

Grasp the concepts and economic implications of Individual Transferable Quotas (ITQs) in fisheries.

Understand the significance of location, species, and market dynamics in identifying and managing fisheries.

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Definitions:

Purchase Cost

The total expense incurred to acquire an asset, including the purchase price and associated costs.

360-Day Year

A financial convention or simplification to treat all months as 30 days in duration for the ease of interest calculations and financial analysis.

Commission

A fee or percentage of a sale paid to an employee or agent for facilitating or completing a sale.

Semiannually

Happening semiannually; every six months.