The Law of Decreasing Returns Applies to

question 51

Multiple Choice

The law of decreasing returns applies to

• A) the long-run average cost curve.
• B) average total cost.
• C) diseconomies of scale.
• D) changes in a variable input with a given quantity of fixed inputs.
• E) changes in a fixed input with a given quantity of variable inputs.

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Definitions:

Export

Goods or services produced in one country and sold to buyers in another country.

Baskets

Containers typically made of interwoven materials like straw or plastic, used for carrying or storing items.

Free Trade

The absence of tariffs, duties, and other governmental barriers to international trade, allowing goods and services to move more freely across borders.

Soybeans

A species of legume native to East Asia, widely grown for its edible bean which has numerous uses in food, oils, and as a source of protein.