QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob. imply decreasing returns to scale c. are not necessarily inconsistent with increasing returns to scale d. occur at all combinations of input usage e. occur only for labor

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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QUESTION 1
Diminishing marginal returns:
a. are consistent with increasing returns to scale
b. imply decreasing returns to scale
c. are not necessarily inconsistent with increasing returns to scale
d. occur at all combinations of input usage
e. occur only for labor
QUESTION 2
Whenever marginal product is positive and declining with increasing use of an input:
a. marginal product is greater than average product
b. average product is declining as input use increases
c. marginal product is less than average product
d. total product is declining as input use increases
e. total product is increasing at a decreasing rate as input use increases
Transcribed Image Text:QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale b. imply decreasing returns to scale c. are not necessarily inconsistent with increasing returns to scale d. occur at all combinations of input usage e. occur only for labor QUESTION 2 Whenever marginal product is positive and declining with increasing use of an input: a. marginal product is greater than average product b. average product is declining as input use increases c. marginal product is less than average product d. total product is declining as input use increases e. total product is increasing at a decreasing rate as input use increases
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