Which of the Following Statements Best Summarizes the Law of Diminishing

question 92

Multiple Choice

Which of the following statements best summarizes the law of diminishing marginal returns?

• A) In the short run, as more labor is hired, output diminishes.
• B) In the short run, as more labor is hired, output increases at a diminishing rate.
• C) In the short run, the amount of labor a firm will hire diminishes as output increases.
• D) As more labor is hired, the length of time that defines the short run diminishes.

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Definitions:

Communications Network

A system of interconnected devices or nodes that can communicate with each other to exchange data and information.

Consumer Type

A classification of individuals based on their consumption patterns, preferences, or demographic characteristics.

Willingness To Pay

The maximum amount a consumer is prepared to pay for a good or service.

Communications Network

A system of interconnected electronic devices or nodes that can exchange data.