The Law of Diminishing Marginal Returns

question 188

Multiple Choice

The law of diminishing marginal returns

• A) explains why the average total cost and marginal cost curves are U-shaped in the short run.
• B) explains why the average total cost, average fixed cost and the marginal cost curves are U-shaped in the short run.
• C) causes average total costs to rise at a decreasing rate as output increases.
• D) causes the difference between average total cost and average variable cost to get smaller as output increases.

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Definitions:

Tympanic Cavity

The air-filled space located in the middle ear.

Ossicles

Small bones in the middle ear that transmit sound from the air to the fluid-filled labyrinth (cochlea).

Inner Ear

The innermost part of the ear, consisting of the cochlea, vestibule, and semicircular canals, crucial for hearing and balance.

Sensorineural

Related to or involving both sensory and neural mechanisms, often used to describe a type of hearing loss that results from damage to the inner ear or auditory nerve.