Home

What is the correct answer?

4

Diminishing returns occur when a firm:

A. Starts incurring losses

B. Uses more and more of one input while holding all other inputs constant

C. Does not utilize its inputs efficiently

D. Cuts down on the quantity of all inputs it uses

Correct Answer :

B. Uses more and more of one input while holding all other inputs constant


Related Questions

General Equilibrium deals with the equilibrium of the: The demand curve of giffen goods will be: In cournot model firms: If by doubling all inputs in the long run output is less than double,… A market demand curve presumes that: Law of Variable Proportions is regarding in: If production increases under increasing returns to scale, the cost will: If two goods have same marginal utility for a consumer then: When total product increases at a decreasing rate: With which of the following concepts is the name of J.M.Keynes particularly… The MC curve cuts the AVC and ATC curves: A decrease in demand lowers the price the most: In the long-run competitive equilibrium: The slope of isocost line (budget line) shows: The slutsky demand curve includes: The name of the system of direct exchange is: The partial equilibrium model keeps other things: If production increases under constant returns to scale, the cost will: The indifference curve technique: A budget line shows: Contraction in demand occurs when: The number of sellers in oligopoly is: Theory of revealed preference is based on: The production techniques are technically efficient: In discriminating monopoly (price discrimination), the cost of production… The longer the period of time, the elasticity of supply will be: Production is a function of: Which of the following formula determine the income elasticity of demand?: If a good is an inferior good then an increase in incomes of the consumers… The behavior of MC curve is determined by the behavior of the: