Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 2 - The Key Principles of Economics - Exercises - 2.4 The Principle of Diminishing Returns - Page 46: 4.6

Answer

If not for the principle of diminishing returns, an unlimited amount of food could be grown in a limited amount of space.

Work Step by Step

Increasing the amount of fertilizer increases the crop yield The principle of diminishing returns limits the crop yield for a given amount of space because at some point the marginal increase in the crop yield approaches zero.
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