When the Marginal Product of an Input Falls as the Quantity

question 55

Multiple Choice

When the marginal product of an input falls as the quantity of the input rises,this is known as

• A) diminishing marginal product.
• B) diminishing output.
• C) diminishing production.
• D) decreasing returns to scale.
• E) inverse marginal product.

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Definitions:

Enforceable

Describes a legal agreement or contract that can be upheld or compelled by law or by a court.

Covenant Not To Compete

A contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area. Although covenants not to compete restrain trade, they are commonly found in partnership agreements, business sale agreements, and employment contracts. If they are ancillary to such agreements, covenants not to compete will normally be enforced by the courts unless the time period or geographic area is deemed unreasonable.

Restriction

A restriction refers to a limitation or condition placed on the use, development, or transfer of property or rights.

Intoxicated

A state of being under the influence of drugs or alcohol to the extent that mental and physical capabilities are significantly impaired.