If the quantity of output rises as more of a variable input is added to a fixed input,
A)the law of diminishing marginal returns does not hold.
B)total fixed cost must be declining.
C)marginal cost must be constant.
D)marginal physical product of the variable input is necessarily rising.
E)none of the above

Question

Quizplus · Accepted Answer

The statement describes a situation where output increases as more of a variable input is added, which is consistent with the initial phase of production where the law of diminishing marginal returns has not yet taken effect. However, this does not necessarily mean that the law does not hold, that total fixed cost is declining (it remains constant by definition), that marginal cost is constant, or that the marginal physical product of the variable input is necessarily rising (it could be increasing at a decreasing rate). Therefore, none of the provided options accurately describe the situation.

If the Quantity of Output Rises as More of a Variable