The law of diminishing returns indicates why
A) beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller amounts of additional satisfaction.
B) the firm's total fixed costs do not change with output in the short run.
C) a firm's long-run average total cost curve is U-shaped.
D) a firm's marginal costs will eventually increase as the firm expands output in the short run.
Correct Answer:
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