Multiple Choice

The law of diminishing marginal returns states that, when successive equal amounts of a variable resource are combined with a fixed amount of another resource,
A) marginal increases in output that can be attributed to each additional unit of the variable resource will eventually increase.
B) total output always increases.
C) marginal increases in output that can be attributed to each additional unit of the variable resource will eventually decline.
D) total output can never increase.
E) total output can become negative.
Correct Answer:
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