QUESTION 1Diminishing marginal returns:a. are consistent with increasing returns to scaleb. imply decreasing returns to scalec. are not necessarily inconsistent with increasing returns to scaled. occur at all combinations of input usagee. occur only for laborQUESTION 2Whenever marginal product is positive and declining with increasing use of an input:a. marginal product is greater than average productb. average product is declining as input use increasesc. marginal product is less than average productd. total product is declining as input use increasese. total product is increasing at a decreasing rate as input use increases

Diminishing marginal returns is a law of economics that states that as more and more units of a…

QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob. imply decreasing returns to scale c. are not necessarily inconsistent with increasing returns to scale d. occur at all combinations of input usage e. occur only for labor

QUESTION 1 Diminishing marginal returns: a. are consistent with increasing returns to scale Ob. imply decreasing returns to scale c. are not necessarily inconsistent with increasing returns to scale d. occur at all combinations of input usage e. occur only for labor

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

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