The law of diminishing marginal returns hold

Reference no: EM131008501

The law of diminishing marginal returns holds that the:

	a.	total product of any variable factor of production will eventually decline, all other things unchanged.
	b.	marginal product of any variable factor of production will at some point decline, because it will eventually become burdened with an excess and overwhelming abundance of other factors in the long run
	c.	marginal product of any variable factor of production will eventually decline, assuming the quantities of other factors of production are given.
	d.	total product can only increase so long, because factors of production eventually become tired or wear out.

ts of Producing Bagels (cents)

Quantity of Bagels

Total Variable Costs

Total Fixed Cost

per period

0	0	10
1	20
2	30
3	35
4	45
5	60
6	80
7	105
8	135

the total cost of producing 6 bagels is equal to $________ and the marginal cost of the 6th bagel is $__________.

	a.	0.20; 0.20
	b.	0.80,0.20
	c.	0.20;0.90
	d.	0.90; 0.20

Marginal cost _______ over the range of increasing marginal returns and _______ over the range of diminishing marginal returns.

	a.	increases; falls
	b.	increases; is constant
	c.	is constant; rises
	d.	falls; increases

Copy of

Marginal cost _______ over the range of increasing marginal returns and _______ over the range of diminishing marginal returns.

	a.	increases; falls
	b.	is constant; rises
	c.	increases; is constant
	d.	falls; increases

If your plant is operating in the positively-sloped portion of a long-run average cost curve, this could be the result of:

	a.	improved utilization of by-products
	b.	economies of scale.
	c.	lower wages.
	d.	diseconomies of scale.

Reference no: EM131008501

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