The law of diminishing marginal productivity states that, as more of a variable input is added to a fixed input, the:Question 5Answera.Marginal product of the variable input will eventually decrease.b.Total product will increase indefinitely.c.Average total cost will decrease.d.Fixed input will become variable.

According to the principle of diminishing marginal productivity:Multiple choice question.if all inputs of production are variable, the marginal productivity of all fixed resources will eventually fall, all else held constant.if at least one input of production is variable, the marginal productivity of additional fixed resources will eventually fall, all else held constant.if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.if all inputs of production are fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.

Which of the following explains why the law of diminishing marginal returns occurs?APer-units costs for a firm increase as the firm builds successively larger plant sizes.BSuccessive units of a good yield lesser amounts of satisfaction to consumers.CAdditional variable resources crowd fixed resources.DWhen a firm reduces price to increase sales, additional revenue to the firm is less than the price.EWhen the price of a product is reduced, total revenue falls.

According to the law of diminishing marginal returnsMultiple Choicethe additional product generated by additional units of an input will eventually diminish.the additional inputs necessary to produce an additional unit of output will diminish.employing additional inputs will diminish total product.total product will fall and then rise as additional units of an input are employed.

The law of diminishing marginal returns means that when one uses more and more of an input:

Which of the following statements best expresses the law of diminishing marginal returns?Multiple ChoiceThe same percentage increase in all inputs will result in a higher percentage increase in total output.As successive amounts of one resource (labour) are added to fixed amounts of other resources, beyond some point the resulting extra output will decline.Because large-scale production allows the realization of increasing returns to scale, the costs of production vary directly with the level of output.The same percentage increase in all inputs will result in a lower percentage increase in total output.Population growth automatically adjusts to that level at which the average product per worker will be at a maximum.