Which of the Following Statements Explains the Difference Between Diminishing

question 181

Multiple Choice

Which of the following statements explains the difference between diminishing returns and diseconomies of scale?

• A)Diminishing returns are the result of changes in explicit costs. Diseconomies of scale are the result of changes in explicit costs and implicit costs.
• B)Diminishing returns refer to production while diseconomies of scale refer to costs.
• C)Diminishing returns cause a firm's marginal cost curve to rise; diseconomies of scale cause a firm's marginal cost curve to fall.
• D)Diminishing returns apply only to the short run; diseconomies of scale apply only in the long run.

---

Definitions:

Mexican War

Also known as the Mexican-American War (1846-1848), a conflict between the United States and Mexico that resulted in the U.S. acquisition of territories in the western portion of North America, including California and New Mexico.

Annexation

The act of incorporating a land area into another political entity, such as a country or state, often implying a forceful or unilateral acquisition.

Statehood

The status attained by a region or territory when it becomes a recognized state within a federal system or an independent nation, often involving a legal and constitutional process.

Presidential Election

The process by which the president of a country is elected, often involving a national vote.