The Law of Diminishing Returns Indicates That

question 401

Multiple Choice

The law of diminishing returns indicates that

• A)as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
• B)because of economies and diseconomies of scale, a competitive firm's long-run average total cost curve will be U-shaped.
• C)the demand for goods produced by purely competitive industries is downsloping.
• D)beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.

---

Definitions:

Individual Project

A task or research activity conducted by a single person, often to explore a specific topic or solve a problem independently.

Groupthink

The impaired group decision making that occurs when making the right decision is less important than maintaining group harmony.

Impartial Leader

A leader who treats all group members fairly and equally, without bias or favoritism, often resulting in more objective and fair decision-making processes.

Decision Making

The mental activity of evaluating alternatives and choosing among them.