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:

Supplemental Products

Additional items or services offered to complement or enhance the primary product.

Core Benefits

The fundamental value or primary advantage that a consumer receives from a product or service.

Symbolic Benefits

The intangible advantages that a product or service provides to the consumer, including prestige, status, or a sense of belonging.

Customer Satisfaction

The measure of how products and services supplied by a company meet or surpass customer expectation.