What Is Diminishing Marginal Product Closely Related to

question 135

Multiple Choice

What is diminishing marginal product closely related to

• A)diminishing total cost
• B)diminishing variable cost
• C)increasing average cost
• D)increasing marginal cost

---

Definitions:

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from each additional unit decreases.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.