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The Law of Diminishing Returns States That

Question 9

Multiple Choice

The law of diminishing returns states that:


A) the specialization of labour will eventually come to an end.
B) eventually a point is reached when, as more of a variable resource is added to a fixed resource, the additions to total output will become fewer and fewer.
C) eventually total production costs will increase.
D) eventually a point is reached at which hiring one more worker will cause total output to decrease.

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