The Law of Diminishing Returns

question 93

Multiple Choice

The law of diminishing returns

• A) explains why marginal cost eventually increases as output expands.
• B) implies that average fixed cost will remain unchanged as output expands.
• C) is true for physical production activities but not for activities such as studying.
• D) applies to a capitalist economy but would be irrelevant if the means of production were owned by the state.

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Definitions:

Self-Management

The ability to control one’s emotions and act with honesty and integrity in a consistent and acceptable manner.

Honesty and Integrity

The adherence to truthfulness, fairness, and uprightness in actions and principles.

Social Awareness

Having empathy for others and having intuition about work problems.

Team Leader

A person who provides guidance, instruction, direction, and leadership to a group of other individuals (the team) for the purpose of achieving the team's goals and objectives.