The Observation That Beyond Some Point, Successive Increases in a Variable

question 146

Multiple Choice

The observation that beyond some point, successive increases in a variable factor of production added to a fixed factor of production lead to smaller and smaller increases in output is

• A) the law of marginal utility.
• B) the law of averages.
• C) the law of diminishing marginal product.
• D) the law of opportunity costs.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specified time period.

Price

The price expected, requisite, or delivered in remuneration for an object or service.

Market Price

The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.