What Does the Law of Diminishing Marginal Returns State

question 5

Multiple Choice

What does the law of diminishing marginal returns state?

• A) When all inputs to production are increased in equal proportions, output will eventually decrease.
• B) When one input is increased, with all other inputs unchanged, the marginal product of the input will eventually decline.
• C) When one input is held constant, and all other inputs are increased, output will eventually decrease.
• D) When one input is increased, and all other inputs are held constant, output will increase at an increasing rate.
• E) When all inputs to production are increased in equal proportions, the addition to output will increase at an increasing rate.

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Definitions:

Polarity

The characteristic of having two opposed attributes or poles, commonly used in reference to the direction of electrical current or magnetism.

Ohm's Law

A fundamental principle in electrical engineering that states the current through a conductor between two points is directly proportional to the voltage across the two points and inversely proportional to the resistance.

Resistive Circuit

A type of electrical circuit that consists solely of resistors and obeys Ohm's Law, designed for applications where resistance is the primary concern.

Lenz's Law

A principle stating that an induced electrical current will flow in a direction that opposes the change causing it.