Diminishing Marginal Returns Occur When

question 188

Multiple Choice

Diminishing marginal returns occur when:

• A) each additional unit of a variable factor adds more to total output than the previous unit.
• B) an additional variable factor adds less to total output than the previous unit.
• C) the marginal product of a variable factor is increasing, but at a decreasing rate.
• D) all of the above are true.

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Definitions:

Humility

The quality of having a modest or low view of one's importance, often leading to a respectful and considerate behavior towards others.

Scientific Attitude

A mindset characterized by curiosity, skepticism, and humility, alongside the methodical pursuit of knowledge.

Optimistic Outlook

The tendency to maintain a positive attitude and expect good outcomes even in face of difficulties.

Empirical Approach

A method of inquiry that relies on direct and indirect observation or experience, as well as empirical evidence, to gain knowledge, often used in scientific research to test hypotheses and theories.