CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

The law of diminishing returns states that if a given number of hours of labor use more capital (with the same technology), then the ______

A. additional output that results from the additional capital gets larger as the amount of capital increases.
B. additional output that results from the additional capital gets smaller as the amount of capital increases.
C. total output that results from the additional capital gets smaller as the amount of capital increases.
Correct Answer: B

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