Asked by Cassandra Alcantar on Jul 27, 2024
Verified
When an additional unit of a variable input adds less to total product than the previous unit,the firm has:
A) increasing returns.
B) diminishing marginal returns.
C) diminishing total returns.
D) diminishing marginal returns and diminishing total returns.
Diminishing Marginal Returns
The principle that adding an additional factor of production results in a smaller increase in output after a certain point.
Total Product
The total output or production by a firm using a given amount of inputs within a specific period.
Variable Input
A resource or factor of production whose quantity can be changed easily in the short term to adjust production levels.
- Grasp the principle of diminishing marginal returns and its implications on production.
Verified Answer
Jul 30, 2024
Learning Objectives
- Grasp the principle of diminishing marginal returns and its implications on production.
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