The Law of Diminishing Marginal Returns

question 360

Multiple Choice

The law of diminishing marginal returns

• A) results in average variable cost (AVC), average total cost (ATC), and marginal cost (MC) curves eventually increasing at an increasing rate.
• B) results in MC but not ATC curves eventually increasing at an increasing rate.
• C) causes average fixed costs to decline continuously as output increases.
• D) causes the difference between average total cost and average variable cost to shrink as output increases.

---

Definitions:

Mean Percentage Rates

Average rates expressed as a percentage over a specified period.

Three Funds

An investment strategy that typically involves a combination of three mutual funds to create a diversified portfolio.

Arthritis Pain Formulas

Specific combinations of medications or treatments designed to alleviate pain caused by arthritis.

ANOVA Table

A table that displays the output of an Analysis of Variance, showing statistics that allow the comparison of more than two groups.