Over the Range of Diminishing Marginal Product,if the Variable Input

question 76

Multiple Choice

Over the range of diminishing marginal product,if the variable input to a firm is increased:

• A) output will increase more than in proportion to the increase in the input.
• B) output will increase less than in proportion to the increase in the input.
• C) output will increase exactly in proportion to the increase in the input.
• D) output will increase more than in proportion to the increase in the inputs at first, but it will eventually increase less than in proportion to the increase in the input.

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Definitions:

Invested

Invested pertains to the funds that have been allocated into financial instruments, assets, or business ventures with the goal of earning a return.

Rate of Return

A positive or negative variation in an investment’s worth over a set schedule, expressed as a percentage of what the investment initially cost.

Rate of Interest

The percentage charged on a loan or paid on savings over a period of time, indicating the cost of borrowing or the gain on savings.