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If a firm is experiencing diminishing marginal returns, its marginal product is declining. True...

Question:

If a firm is experiencing diminishing marginal returns, its marginal product is declining.

True

False

Diminishing Returns:

The Law of Diminishing Returns is used to study short-term production and cost functions. This law is used to explain why, in the short-term, increments in input can only increase the output to a certain extent.

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True.

Diminishing returns means that every time one input (with all others reaming constant) is increased by 1, the resulting increase in output is...

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Law of Diminishing Returns: Definition & Examples

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Chapter 10 / Lesson 8
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Learn about the law of diminishing returns, or diminishing marginal returns. See the point of diminishing returns graphed and how to calculate it with examples.


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