If You Add Too Many Inputs,your Business May Experience

question 52

Multiple Choice

If you add too many inputs,your business may experience

• A) increasing marginal revenue.
• B) diminishing marginal product.
• C) diminishing cost input.
• D) accelerated product function.

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Definitions:

Marginal Utility

The added satisfaction a consumer gets from consuming one additional unit of a good or service.

Price Ratio

The proportionate relationship between the prices of two goods or services, indicating how many units of one good can be exchanged for one unit of another.

Marginal Utility

The extra pleasure or benefit gained by a person from consuming one more unit of a product or service.

Total Utility

The overall satisfaction or utility that a consumer derives from consuming a certain quantity of goods or services.