The Law of Diminishing Returns Explains Why

question 4

Multiple Choice

The law of diminishing returns explains why:

• A) when marginal product falls, marginal cost rises.
• B) economies of scale exist.
• C) marginal product and marginal cost are directly related.
• D) AFC declines over the entire range of output in the long run.

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Definitions:

Volcanic Eruptions

The process by which magma, gases, and ash escape from a volcano to the surface.

Secondary Xylem

The part of a plant’s vascular system that is produced after the first year of growth, providing support and conducting water and nutrients; it's often referred to as wood in trees.

Cambium

See Lateral Meristems.

Ground Tissue

Ground tissue comprises most of a plant's vegetative organs, such as leaves and stems, providing support, storage, and photosynthesis functions.