According to the Law of Diminishing Returns, When Some Factors

question 150

Multiple Choice

According to the law of diminishing returns, when some factors of production are fixed, in order to increase production by a given amount, a firm will eventually need to add successively:

• A)smaller and smaller quantities of the variable factors of production.
• B)constant quantities of the variable factors of production.
• C)larger and larger quantities of the variable factors of production.
• D)larger and larger quantities of the fixed factor of production.

---

Definitions:

Mean Square

A statistical measure used primarily in the context of ANOVA, representing the average of the squares of differences from the mean, indicative of variance.

Main Effect

The direct impact of an independent variable on a dependent variable in an experimental study, ignoring the effects of other independent variables.

Factor A

In experimental design, a variable that is deliberately manipulated to observe its effect on a dependent variable, often referred to as an independent variable.

Critical Value

The threshold value that a test statistic must exceed in order to reject the null hypothesis in a statistical test.