The Law of Diminishing Returns Is a Result of the Fact

question 29

True/False

The law of diminishing returns is a result of the fact that more and more units of a variable input are being added to a fixed input.Because of the limitations imposed by the fixed input,at some point the productivity of additional units of the variable input must decline.

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Definitions:

Privately Owned

Properties or businesses that are owned by individuals or corporations rather than by the government or public.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own assets, incur liabilities, and conduct business.

Closely Held

A business structure where the ownership is concentrated in a small group of individuals, often family members.

Agency Relationships

A legal and fiduciary relationship between two parties, where one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.