The Law of Diminishing Returns Explains Why

question 104

Multiple Choice

The law of diminishing returns explains why:

• A)when marginal product falls, marginal cost rises.
• B)economies of scale exist.
• C)marginal product and marginal cost are directly related.
• D)AFC declines over the entire range of output in the long run.
• E)firms produce at the minimum point on the MC curve.

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Definitions:

Systematic Rehearsal

A deliberate practice of repeatedly going over information or tasks to strengthen memory and improve proficiency.

Complex Rehearsal

A memory-enhancing technique that involves thinking about the meaning of the information to be remembered or making connections between new and existing knowledge.

Semantic Memory

A subset of long-term memory that involves the recollection of facts, concepts, and knowledge about the external world that is not drawn from personal experience.

Hierarchical Approach

The theory that semantic memory consists of hierarchical networks of interconnected concept nodes.