When a Firm Is Experiencing Diminishing Returns

question 60

Multiple Choice

When a firm is experiencing diminishing returns

• A) average cost is always increasing.
• B) average cost is always decreasing.
• C) marginal costs are always less than average costs.
• D) none of the above

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Definitions:

Newborn

An infant that is in its first few hours to weeks of life outside the uterus, requiring specific care and medical attention.

Growth and Development

The process by which living organisms increase in size and undergo changes in their structure, capabilities, and function.

Neonate

An infant during the first 4 weeks of life.

Diabetes

A chronic condition characterized by high levels of sugar in the blood, usually due to insulin resistance, deficiency, or both.