The Law of Diminishing Marginal Returns CANNOT Predict the Effect

question 21

Multiple Choice

The law of diminishing marginal returns CANNOT predict the effect of an additional unit of input when

• A) all other inputs are fixed.
• B) it is possible to vary the proportion in which the various inputs are used.
• C) technology is changing.
• D) output rises.
• E) marginal product is falling.

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Definitions:

Employee Referral

A recruitment method where current employees recommend potential candidates for open positions within the company, sometimes rewarded with incentives.

Internet Job Site

A platform on the World Wide Web dedicated to employment searching and recruitment, where employers post job vacancies and job seekers submit resumes.

Company Objective

A specific, measurable goal that a business endeavors to achieve to advance its mission and improve success.

Employee Training

A planned effort to teach employees more about their job so as to improve their performance and motivation.