The Observation That After Some Point, Successive Equal Size Increases

question 80

Multiple Choice

The observation that after some point, successive equal size increases in a variable factor of production, such as labor, added to fixed factors of production, will result in smaller increases in output is the

• A) law of diminishing marginal product.
• B) streamlining production function.
• C) consumer equilibrium.
• D) theory of increasing marginal utility.

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Definitions:

Marginal Product

The additional output derived from employing one more unit of a given input, while keeping other inputs constant.

Marginal Product

The additional output generated by employing one more unit of a specific factor of production, keeping other factors constant.

Perfectly Competitive

A market structure where there are many sellers and buyers, products are homogeneous, and there is free entry and exit, leading to efficient outcomes and zero economic profits in the long run.

Corn Farmer

An individual or entity engaged in the cultivation of corn as a crop for various uses, such as food, feed, and biofuel.