Asked by
melanie rulos
on Nov 16, 2024
Verified
Because of diminishing returns, a factor in abundant supply has a
A) high marginal product and a high rental price.
B) high marginal product and a low rental price.
C) low marginal product and a high rental price.
D) low marginal product and a low rental price.
Diminishing Returns
Diminishing returns refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.
Rental Price
The cost of leasing or renting a property or equipment, typically expressed on a monthly or yearly basis.
- Elucidate how diminishing returns influence marginal productivity and the leasing values of production factors.
Verified Answer
BS
Learning Objectives
- Elucidate how diminishing returns influence marginal productivity and the leasing values of production factors.