If the Marginal Product of Each Factor Decreases as the Amount

question 38

True/False

If the marginal product of each factor decreases as the amount of that factor used increases, then there must be decreasing returns to scale.

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Definitions:

Self-Awareness

The state of being cognizant of one’s own personality, sensations, motivations, and yearnings.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by persistent feelings of sadness and loss of interest.

Social Comparison Theory

A theory suggesting that individuals determine their own social and personal worth based on how they stack up against others.

Objective Standards

Criteria or benchmarks that are based on measurable and unbiased evaluations.