If Diminishing Marginal Returns Is in Effect

question 27

Multiple Choice

If diminishing marginal returns is in effect

• A)marginal costs fall.
• B)marginal costs rise.
• C)average costs fall.
• D)average revenue is constant.

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Definitions:

Large Amount

A term used to indicate a significantly high quantity or volume of something.

Output Produced

The total quantity or amount of goods and services produced by a business, industry, or economy.

Maximizing Profits

Involves strategies businesses employ to increase their earnings to the highest possible level.

Payment to Labor

Compensation provided to employees in the form of wages, salaries, bonuses, and benefits for their work and services.