It Is Possible That Total Quantity of Produced Goods Can

question 3

True/False

It is possible that total quantity of produced goods can decrease as the result of diminishing marginal productivity of inputs, even if marginal products of all inputs are positive.

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Definitions:

Put Option

A financial deal that provides the holder the privilege, yet not the compulsion, to offload a specified quantity of a basic asset at a fixed rate within an established timeframe.

Underlying Asset

The financial instrument (such as stocks, bonds, commodities) upon which derivatives and other financial instruments are based.

Troy Ounces

A measurement unit traditionally utilized for the weight of precious metals, where one troy ounce equals about 31.1035 grams.

Hedged

A financial strategy employed to reduce the risk of adverse price movements in an asset by taking an offsetting position in a related security.