"Diminishing Marginal Returns" Means That

question 316

Multiple Choice

"Diminishing marginal returns" means that:

• A) each additional unit of an input will decrease output.
• B) each additional unit of an input will increase output,but by smaller and smaller amounts as inputs increase.
• C) each additional unit of an input will increase output,but by larger and larger amounts as inputs increase.
• D) the firm is maximizing profit.

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Definitions:

Adrenal Hormone

Hormones produced by the adrenal glands located above the kidneys, including adrenaline and cortisol, which are involved in stress responses, metabolism, and immune system regulation.

DHEA

Dehydroepiandrosterone, a hormone produced by the adrenal glands that serves as a precursor to sex hormones.

Moral Sense

An innate or developed capacity within humans to judge actions as right or wrong based on societal norms and personal ethics.

Innate Understanding

Knowledge or understanding that is believed to be inborn or present naturally rather than acquired through experience.