Asked by
amanda lozano
on Oct 12, 2024Verified
If marginal output is rising it is possible to have
A) diminishing returns.
B) negative returns.
C) both diminishing returns and negative returns.
D) neither diminishing returns nor negative returns.
Diminishing Returns
An economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.
Marginal Output
The additional quantity of output that is produced by using one more unit of a given input.
Negative Returns
Occurs when a company or investment loses more money than it earns or when costs exceed revenues.
- Acquire insight into the law of diminishing returns and how it impacts production and cost considerations.
Verified Answer
DH
Learning Objectives
- Acquire insight into the law of diminishing returns and how it impacts production and cost considerations.