Asked by
Jyotika Sharma
on Nov 04, 2024Verified
Diminishing marginal returns implies
A) decreasing average variable costs.
B) decreasing marginal costs.
C) increasing marginal costs.
D) decreasing average fixed costs.
Marginal Costs
The cost associated with producing one additional unit of a product or service.
Variable Costs
Expenses that change in proportion to the activity or volume of operations in a business.
Fixed Costs
Fixed charges that are unaffected by changes in production volume, including rental fees and payrolls.
- Understand the concept of diminishing marginal returns and its implications on production costs.
Verified Answer
DK
Learning Objectives
- Understand the concept of diminishing marginal returns and its implications on production costs.