The Law of Diminishing Marginal Returns

question 41

Multiple Choice

The law of diminishing marginal returns:

• A)is relevant in both the short and the long-run.
• B)says that increasing fixed inputs eventually results in smaller and smaller increases in total output.
• C)says that increasing variable inputs eventually results in smaller and smaller increases in total output.
• D)says that increasing variable inputs eventually results in smaller and smaller increases in total cost.

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Definitions:

Standardization

The process of implementing and developing technical standards based on the consensus of different parties including firms, users, interest groups, standards organizations, and governments.

Modular Design

An approach to design that partitions a system into smaller parts or modules, which can be independently created and then used in different systems.

Ingredients

Components or elements combined in the preparation of a particular dish or product.

Value Engineering

A systematic method to improve the "value" of goods or products and services by using an examination of function.