Diminishing Marginal Product

question 106

Multiple Choice

Diminishing marginal product:

• A)causes the variable cost curve to become flatter.
• B)causes the variable cost curve to become steeper.
• C)has no relation to the variable cost curve.
• D)causes the fixed cost curve to become flatter.

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Definitions:

Flawed Units

items that have defects or do not meet the quality standards set by the manufacturer or industry, rendering them less valuable or unsellable.

Substitute Goods

Products or services that can be used in place of each other, satisfying the same consumer needs or desires.

Complementary Goods

Products or services that are used together, where the use or consumption of one enhances the value of the other.

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.