The Law of Diminishing Marginal Returns

question 111

Multiple Choice

The law of diminishing marginal returns

• A)explains why the average total cost and marginal cost curves are U-shaped in the short run.
• B)explains why the average total cost, average fixed cost, and the marginal cost curves are U-shaped in the short run.
• C)causes average total cost to rise at a decreasing rate as output increases.
• D)causes the difference between average total cost and average variable cost to get smaller as output increases.

---

Definitions:

Binet

A reference to Alfred Binet, a French psychologist who, along with his colleague Théodore Simon, developed the first intelligence test in the early 20th century.

Stanford

A prestigious university located in California, known for its cutting-edge research, especially in technology and medicine.

Galton

Refers to Sir Francis Galton, a 19th-century British polymath known for his contributions to fields such as statistics, psychology, and anthropology.

Academic Performance

The extent to which a student, teacher, or institution has achieved their short or long-term educational goals.