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If Diminishing Marginal Returns Are in Effect

Question 101

Multiple Choice

If diminishing marginal returns are in effect,


A) marginal cost decreases as the firm increases output.
B) marginal cost increases as the firm increases output.
C) marginal cost increases as the firm decreases output.
D) total cost increases as the firm decreases output.
E) total cost decreases as the firm increases output.

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