Author Question: Diminishing marginal returns occurs when A) all inputs are increased and output decreases. B) ... (Read 39 times)

HCHenry · **on:** Jun 29, 2018

Diminishing marginal returns occurs when

A) all inputs are increased and output decreases.
B) all inputs are increased and output increases by a smaller proportion.
C) a variable input is increased and output decreases.
D) a variable unit is increased and its marginal product falls.

Question 2

The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day?

A) 10.00 per dozen
B) 8.00 per dozen
C) 6.00 per dozen
D) 4.00 per dozen