The first of the three ranges of production is characterized by _______ marginal returns.
A) increasing
B) constant
C) diminishing
D) negative

Question

Quizplus · Accepted Answer

In the first range of production, as inputs are added, the output increases at an increasing rate, which is characterized by increasing marginal returns. This means each additional unit of input results in a greater increase in output than the previous unit.

The First of the Three Ranges of Production Is Characterized