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The Law of Diminishing Returns States

Question 16

Multiple Choice

The Law of Diminishing Returns states:


A) there is a direct relationship between price and quantity supplied.
B) there is an inverse relationship between price and quantity demanded.
C) as additional units of a good are consumed, beyond some point each additional unit will add less satisfaction.
D) as additional units of a variable factor are added to a fixed factor, beyond some point each additional unit of the variable factor will add less to output than did the previous unit.

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