Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 6 of 13
The principle of diminishing returns says that ______
B. all things being equal, your dollars never buy all the things they previously could have.
C. if inputs are reduced, output will remain constant.
D. all things being equal, as an input is increased, output increases, but at a decreasing rate.
E. as you add inputs to a process, you always get more output.
A. consumer loyalty is constantly decreasing.
B. all things being equal, your dollars never buy all the things they previously could have.
C. if inputs are reduced, output will remain constant.
D. all things being equal, as an input is increased, output increases, but at a decreasing rate.
E. as you add inputs to a process, you always get more output.
User Contributed Comments 0
You need to log in first to add your comment.
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.