The Law of Diminishing Returns Indicates Why

question 222

Multiple Choice

The law of diminishing returns indicates why

• A) beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller amounts of additional satisfaction.
• B) the firm's total fixed costs do not change with output in the short run.
• C) a firm's long-run average total cost curve is U-shaped.
• D) a firm's marginal costs will eventually increase as the firm expands output in the short run.

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Definitions:

Metabolism

The set of life-sustaining chemical reactions in organisms for converting food to energy, building proteins, and eliminating waste products.

Predisposed

Having a tendency or inclination to something in advance, often referring to genetic or environmental factors leading to certain diseases or behaviors.

Calories

Units of energy used to measure the amount of energy food provides to the body.

Processed Foods

Foods that have been altered from their natural state, often through methods like canning, freezing, refrigeration, dehydration, and packaging, to enhance preservation, flavor, or convenience.