The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: a. Total physical product begins to fall b. The marginal physical product rises c. The marginal physical product falls d. The average physical product falls

The law of diminishing (marginal) returns states that as more of a variable
factor is added to a certain amount of a fixed factor, beyond some point:
a. Total physical product begins to fall
b. The marginal physical product rises
c. The marginal physical product falls
d. The average physical product falls
by

1 Answer

Answer :

c. The marginal physical product falls
by

Related questions

Why is the law of diminishing marginal returns true? a. specialization and division of labor b. spreading the average fixed cost c. limited capital d. all factors being variable in the long-run

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An employer goes on employing more and more of a factor units until : (1) the Average Revenue Productivity becomes equal to Marginal Revenue Productivity. (2) the Marginal Revenue Productivity becomes zero. (3) the Diminishing Marginal Returns sets into operation. (4) the Marginal Revenue Productivity of a factor becomes equal to its reward.

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Increase in price of a product reduces the purchasing power as a result of which demand for a product goes up. This effect is known as (a) Substitution effect ; (b) Income effect ; (c) Diminishing marginal utility concept (d)Law of diminishing returns

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TVC curve begins to……….with the onset of diminishing returns (a) Rise at an Increasing rate ; (b) Rise at an decreasing rate; (c) Fall at an Increasing rate ; (d) Stabilize

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What effect does the law if diminishing returns have on total variable cost?

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When the total product rises at an increasing rate, the - (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant

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When the total product rises at an increasing rate, the (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant

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Which of the following cost curve is never `U' shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve

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The law of diminishing returns applies to - (1) All sectors (2) Industrial sector (3) Agricultural sector (4) Service sector

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In the short run, diminishing marginal returns is implied by (a) Rising MC ; (b) Falling MC ; (c) Rising AVC ; (d) Constant TC

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The law of demand states that: a. as the quantity demanded rises, the price rises b. as the price rises, the quantity demanded rises c. as the price rises, the quantity demanded falls d. as supply rises, the demand rises

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1. Which of the following concepts represents the extra revenue a firm receives from the services of an additional unit of a factor of production? a. total revenue b. marginal physical product c. marginal revenus product d. marginal revenue

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Marginal product is…………. (a) Rate at which total production changes with change in variable input; (b) Rate at which total production changes with change in total cost; (c) Rate at which total production changes with change in fixed cost ; (d) None

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Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve

Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve

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Diminishing returns occurs when a firm (a) uses too much of all inputs (b) uses more and more of one input while holding another inputs constant © does not utilize its inputs efficiently (d) cut down on the quantity of all inputs it uses

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Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

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Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

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It is prudent to determine the size of the output when the industry is operating in the stage of - (1) increasing returns (2) constant returns (3) diminishing returns (4) negative returns

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It is prudent to determine the size of the output when the industry is operating in the stage of (1) increasing returns (2) constant returns (3) diminishing returns (4) negative returns

Description : It is prudent to determine the size of the output when the industry is operating in the stage of (1) increasing returns (2) constant returns (3) diminishing returns (4) negative returns

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Over short period, when income rises, average propensity to consume usually - (1) rises (2) falls (3) remains constant (4) fluctuates

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Over short period, when income rises, average propensity to consume usually (1) rises (2) falls (3) remains constant (4) fluctuates

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According to principle of diminishing marginal rate of substitution a. One commodity must be decreased while other is increased b. Commodity which is increased has higher marginal significance c. Commodity which is decreased has higher marginal significance. Of these statemenls: A.Only a is correct B.Both a and b are correct C.Both a and c are correct D.All are correct

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'Law of demand' implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

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‘Law of demand’ implies that when there is excess demand for a commodity, then (1) price of the commodity falls (2) price of the commodity remains same (3) price of the commodity rises (4) quantity demanded of the commodity falls

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If total revenue rises when price falls, the demand curve is (a) Elastic (b) Unitary elastic (c) Inelastic (d) None of the above

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When average cost production (AC) falls, marginal cost of production must be - (1) rising (2) Falling (3) Greater than the average cost (4) Less than the average cost

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