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The Law of Diminishing Returns States That ________

Question 50

Multiple Choice

The Law of Diminishing Returns states that ________.


A) successive increases in inputs eventually lead to less additional output when one of the inputs is fixed
B) successive increases in product prices lead to a fall in revenue
C) the demand for a good decreases as the price of the good increases, all other things remaining constant
D) the net benefits of a perfectly competitive firm decrease as more firms enter the market

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