Since There Are Diminishing Returns in the Long Run,the Market

question 93

True/False

Since there are diminishing returns in the long run,the market demand curve is negatively sloped.

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Definitions:

Utility

Represents the satisfaction or benefit a consumer receives from consuming a product or service.

Transitivity

In decision theory and economics, transitivity refers to the logical consistency in preference ordering such that if Option A is preferred over B, and B over C, then A should be preferred over C.

Indifference Map

A collection of indifference curves that represent a consumer’s preferences for various combinations of goods, illustrating how those preferences change with different bundles.

Marginal Rate

The marginal rate typically refers to the amount of change in one variable due to a unit change in another, commonly used in economics to describe rates of substitution or transformation.