The Principle of Diminishing Marginal Returns means what? the more a good is consumed, the lower the average benefit from consumption. the more of a good that is produced, the greater the benefit of the last good to the supplier. the less of a good that is produced, the greater the average productivity of inputs. The more of a good that is produced, the lower the productivity of the last input to production. the more of a good that is produced, the greater the marginal productivity of the last input.

Answered: The Principle of Diminishing Marginal…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

The Principle of Diminishing Marginal Returns means what?

		the more a good is consumed, the lower the average benefit from consumption.
		the more of a good that is produced, the greater the benefit of the last good to the supplier.
		the less of a good that is produced, the greater the average productivity of inputs.
		The more of a good that is produced, the lower the productivity of the last input to production.
		the more of a good that is produced, the greater the marginal productivity of the last input.

Expert Solution

Step 1: Define Diminishing Marginal Returns:

Diminishing Marginal Returns states as additional units of a variable input are added to a fixed input in the production process, the marginal increase in output will eventually decrease, leading to reduced efficiency and productivity gains.

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions