When the Marginal Product of an Input Declines as the Quantity

question 90

Multiple Choice

When the marginal product of an input declines as the quantity of that input increases,the production function exhibits

• A)increasing returns to scale.
• B)decreasing returns to scale.
• C)diminishing total product.
• D)diminishing marginal product.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.

Periodic Inventory System

A method of inventory accounting where updates to inventory levels are made at specific periods, such as monthly or annually, rather than continuously.