Diminishing Returns to Specialization Occur When

question 34

Multiple Choice

Diminishing returns to specialization occur when

• A) each additional unit is produced with lesser number of laborers.
• B) a nation's gross domestic product declines for a few years.
• C) production possibility frontier appears as a rectangle.
• D) more units of resources are required to produce each additional unit.

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Definitions:

Repeat-purchase Item

A product or service that is bought by consumers on a regular basis due to its continuing need or satisfaction.

Free Riders

Individuals or entities that benefit from resources, goods, or services without paying for them or contributing to their provision.

Production Costs

The expenses incurred in the manufacture of goods or services, including raw materials, labor, and overhead costs.

Benefit

An advantage or gain received from a product or service.