The Law of Diminishing Returns States That as a Firm

question 73

Multiple Choice

The law of diminishing returns states that as a firm increases

• A) all the inputs is uses, the marginal product of each of these inputs always decreases.
• B) a variable input, with a given quantity of fixed inputs, the firm's marginal cost eventually decreases.
• C) a variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.
• D) a variable input, given the quantity of fixed inputs, the firm's average total cost will eventually decrease.

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Definitions:

Mood-congruent Memory

The tendency to recall experiences that are consistent with one's current mood.

State-dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.

Encoding Strategies

Techniques used to process and store information in memory more effectively.

Cues in Retrieval

Stimuli or signals that help bring a memory or piece of information to mind, facilitating the process of recalling information.