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In the Area of Diminishing Returns in Production

Question 15

Multiple Choice

In the area of diminishing returns in production:


A) Total output declines with each additional unit of labour input.
B) The marginal product of labour first increases, then reaches a maximum level, and then decreases.
C) The marginal product of labour first decreases, then reaches a minimum level, and then increases.
D) The marginal product of labour increases at a decreasing rate.
E) The marginal product of labour decreases eventually.

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