Table 7-1

-An example of the law of variable input proportions can be found in
A)the law of increasing returns to scale.
B)the law of diminishing marginal returns.
C)the law of large numbers.
D)the law of demand.

Question

Table 7-1  ​
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-An example of the law of variable input proportions can be found in
A)the law of increasing returns to scale. 
B)the law of diminishing marginal returns. 
C)the law of large numbers. 
D)the law of demand.

Quizplus · Accepted Answer

The law of variable input proportions states that as a firm increases the quantity of one input while holding the quantities of all other inputs constant, the marginal product of the variable input will eventually decline. This is also known as the law of diminishing marginal returns. Therefore, the best choice is B, the law of diminishing marginal returns.

Table 7-1 ​

Table 7-1