Which of the Following Statements Is Equivalent to the Law

question 4

Multiple Choice

Which of the following statements is equivalent to the law of diminishing marginal returns?

• A)A stitch in time saves nine.
• B)You can't make an omelet without breaking eggs.
• C)Too many cooks spoil the broth.
• D)If you can't stand the heat, get out of the kitchen.

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Definitions:

Social Costs

The total cost to society, including both the private costs borne by producers and also any external costs to others not involved in the transaction.

Social Benefits

The aggregate advantage to society derived from the production or consumption of a product, encompassing both individual benefits and any additional external advantages.

Pay-per-view Movies

A service that allows consumers to pay for individual movies to watch rather than subscribing to a broad service offering.

Common Resource

A resource like air or water that is available to all but can be depleted by overuse.