Upgrade to access all content for this subject
A unique short-run problem in the production of a particular good is the Law of Diminishing Marginal Returns.
Which of the following statements best explains this phenomenon?
As Jack eats continuous slices of pizza, he gains less and less enjoyment from each slice.
Because large-scale production allows the realization of economies of scale, the real costs of production vary directly with the level of output.
As more workers are added to work on a project that has a fixed amount of capital resources for them to work on, beyond some point the resulting extra output will begin to decline.
Population growth automatically adjusts to that level at which the average product per worker will be at a maximum.
Proportionate increases in the inputs of all resources will result in a less-than-proportionate increase in total output.