The Law of Diminishing Returns Implies That, with the Quantity

question 265

Multiple Choice

The law of diminishing returns implies that, with the quantity of capital fixed, as the use of labor rises

• A) total product will fall eventually.
• B) the marginal product of labor will fall eventually.
• C) the total product of labor will fall below the marginal product of labor.
• D) the production process will become technologically inefficient eventually.

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Definitions:

Percentage

A rate, number, or amount in each hundred, often used to express a proportion of a whole.

Algebraic Expression

A mathematical phrase that can contain numbers, operators, and variables, but no equal sign.

Exponent Laws

Mathematical rules that describe operations on powers, including multiplication, division, and raising powers to powers.

Financial Calculation

The process of determining financial figures or results through formulas and financial models, often involving interests, payments, or investments.