Decreasing Marginal Returns

question 36

Multiple Choice

Decreasing marginal returns

• A) can be avoided if a firm watches costs.
• B) affect all firms, but at different production levels.
• C) affect all firms at the same level of production.
• D) disappear when the firm produces a large enough level of output.
• E) mean that the average product of labor starts as a negative number and then becomes positive.

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Definitions:

Echoic Memory

A form of sensory memory that holds auditory information for a few seconds after the sound is heard.

Automatic Encode

The unconscious processing of incidental information into memory, without the need for active effort or awareness.

Day's Events

Activities, occurrences, or experiences that happen throughout the course of a single day.

Effortful Processing

A type of active and conscious information processing requiring attention and effort to encode or remember information.