The law of diminishing returns states that as a firm increases
A) all the inputs is uses, the marginal product of each of these inputs always decreases.
B) a variable input, with a given quantity of fixed inputs, the firm's marginal cost eventually decreases.
C) a variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases.
D) a variable input, given the quantity of fixed inputs, the firm's average total cost will eventually decrease.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as more of a variable input is added to a fixed amount of other inputs, the additional output from each additional unit of the variable input will eventually decrease.

The Law of Diminishing Returns States That as a Firm