A Firm Produces Its Product Using Both Capital and Labor

question 76

Multiple Choice

A firm produces its product using both capital and labor.When it does not change its capital usage,but doubles its labor input,its output increases by less than 50%.Which of the following is the most likely explanation of this finding?

• A) the principle of opportunity cost
• B) the principle of diminishing returns
• C) the marginal principle
• D) the spillover principle

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Definitions:

Systems Biology

A field of biology that synthesizes knowledge of many small parts to understand the whole. Also referred to as integrative biology or integrative systems biology.

Integrative Biology

A field of biology that focuses on the integration of diverse scientific disciplines to understand biological complexity at various levels, from molecules to ecosystems.

Sexual Reproduction

A biological process by which organisms create offspring by combining genetic materials from two different sexes, typically involving the fusion of sperm and egg cells.

Variation

The occurrence of differences among individuals within a population, due to genetic differences and environmental factors, which can lead to biodiversity.