Question

The government spends $45 million on heart disease research and gains in reducing death from heart disease are significant. If the law of diminishing returns holds, what would additional increases in expenditure on heart disease research likely do to reduce death from heart disease

Answer 1

Answer:

They would cause relatively smaller reductions in death from heart disease.

Explanation:

Since in the question it is mentioned that the government incurred $45 million for research on the heart disease and gain that decreased the death occured from the heart disease. Now if the law of diminishing retuns hold, so the extra rise in expenditure on heart disease result in relatively small decline as it decreases the returns

Therefore the same is to be considered