The Law of Diminishing Returns States That as a Firm

question 73

Multiple Choice

The law of diminishing returns states that as a firm increases

• A) all the inputs is uses, the marginal product of each of these inputs always decreases.
• B) a variable input, with a given quantity of fixed inputs, the firm's marginal cost eventually decreases.
• C) a variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.
• D) a variable input, given the quantity of fixed inputs, the firm's average total cost will eventually decrease.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.