A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2017 · Q121 Mark
According to the law of diminishing returns, what happens as more of a variable factor is combined with a fixed factor?
- A An increase in the price of the variable factor will eventually result in an increase in production costs. B A reduction in the quality of the variable factor will eventually result in an increase in production costs. C Fewer units of the variable factor will be needed to produce equal increases in output. D The proportions in which the factors are combined will eventually result in progressively smaller increases in output.[1]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.
- [1] D
Write your answer and get it marked
On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.
Sign up free →