The Third of the Three Ranges of Production Is Characterized

question 192

Multiple Choice

The third of the three ranges of production is characterized by _______ marginal returns.

• A) increasing
• B) constant
• C) diminishing
• D) negative

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Definitions:

Output

The total amount of goods or services produced by a person, machine, or company.

Producing Units

Entities, such as factories or workshops, involved in the manufacture of goods or the provision of services.

Efficient Scale

The level of production at which a firm's average costs are minimized, and efficiency is maximized.

Production

The process of creating goods and services through the combination of labor, materials, and technology.