Solved

The Law of Diminishing Returns States That

Question 195

Multiple Choice

The law of diminishing returns states that


A) as we continually add variable factors to a fixed amount of other resources, output eventually increases at a decreasing rate.
B) as we increase plant size, costs must diminish.
C) the additional output generated by the employment of additional units of a variable input eventually decline.
D) both a and c are correct.

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