What does the term 'diminishing returns' imply in the context of resource allocation? (2023)
Practice Questions
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Q1
What does the term 'diminishing returns' imply in the context of resource allocation? (2023)
Increasing resource input leads to proportionally higher output.
After a certain point, adding more resources results in smaller increases in output.
Resources should be allocated equally to maximize output.
All resources must be utilized to achieve maximum efficiency.
Diminishing returns imply that after a certain point, adding more resources results in smaller increases in output, highlighting the need for careful resource allocation.
Questions & Step-by-step Solutions
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Q
Q: What does the term 'diminishing returns' imply in the context of resource allocation? (2023)
Solution: Diminishing returns imply that after a certain point, adding more resources results in smaller increases in output, highlighting the need for careful resource allocation.
