When Production Is Said to Be Characterized by Diminishing Marginal

question 31

Multiple Choice

When production is said to be characterized by diminishing marginal productivity:

• A) unskilled workers are less productive than skilled workers.
• B) output must increase with each additional unit of the input used in production.
• C) increasing the amount of one input used means more of another input must be used.
• D) adding additional inputs may still cause output to increase.

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Definitions:

Threshold

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The point or level at which something begins or changes; a critical point signaling a transition.

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A situation in financial markets where one party has more or better information than the other, usually leading to an unfair advantage.