Diminishing Marginal Returns

question 43

Multiple Choice

Diminishing marginal returns:

• A) imply decreasing returns to scale.
• B) occur at all combinations of input usage.
• C) occur only for labor.
• D) are consistent with increasing returns to scale.
• E) are inconsistent with increasing returns to scale.

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his works "The Wealth of Nations," which is considered the foundation of modern economic theory.

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single entity can dictate prices, leading to efficient distribution of goods and services.

Martin Heidegger

A German philosopher known for his existential and phenomenological explorations, notably in his work "Being and Time."

Authentic

Something genuine, not copied or false; true to one's own personality, spirit, or character.