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Questions and Answers
What is the main concept of the law of diminishing marginal returns as discussed in the text?
What is the main concept of the law of diminishing marginal returns as discussed in the text?
- Output per worker remains constant as more workers are added
- Output per worker increases exponentially as more workers are added
- Output per worker decreases as more workers are added but other inputs remain fixed (correct)
- Output per worker increases as more workers are added
How does the law of diminishing marginal returns impact equipment per worker in the film industry according to the text?
How does the law of diminishing marginal returns impact equipment per worker in the film industry according to the text?
- Equipment per worker remains constant regardless of the number of workers
- Equipment per worker increases exponentially as more workers are added
- Equipment per worker decreases as more workers are added (correct)
- Equipment per worker increases as more workers are added
In what scenario would an industry not face diminishing returns to extra workers based on the text?
In what scenario would an industry not face diminishing returns to extra workers based on the text?
- When adding more workers directly increases output without limit (correct)
- When the industry has access to unlimited resources
- When the number of workers is decreased
- When only one input is fixed and all others can be varied
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