Which of the following statements best illustrates the concept of diminishing re

Practice Questions

Q1
Which of the following statements best illustrates the concept of diminishing returns in resource allocation?
  1. Increasing the number of workers in a factory leads to a proportional increase in output.
  2. Adding more fertilizer to a crop field results in a smaller increase in yield over time.
  3. Investing in technology always leads to higher productivity.
  4. Resource allocation should always prioritize financial returns.

Questions & Step-by-Step Solutions

Which of the following statements best illustrates the concept of diminishing returns in resource allocation?
  • Step 1: Understand the Question
  • Step 2: Define Diminishing Returns
  • Step 3: Look for Examples
  • Step 4: Identify the Correct Option
  • Step 5: Conclusion
No concepts available.
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