How to choose? why?
Diminishing marginal returns is a: 1)long run concept; 2)short run concept; 3)concept which shows economices and diseconomices of scale; 4)concept associated only with small sized firms.
The law of diminishing returns indicates that: 1)as extra units of a variable resource are added to a fixed resource,the extra or marginal product will decline beyond some point; 2)because of economices and diseconomices of scale, a competitive firm's long-run average cost curve will be U-shaped; 3)the demand for goods produced by purely competitive industries is downsloping; 4)beyond some point, the extra utility derived from additional units of a product will yield for the consumer smaller extra amounts of satifaction.
The minimum point of the long run average cost curve represents: 1) allocative efficient; 2)market equilibrium; 3) productive efficient quantity; 4)an increasing cost industry.


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