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The Principle of Diminishing Returns to Capital States That If

Question 94

Multiple Choice

The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:


A) less is produced.
B) less production is wasted.
C) the more an additional unit of capital adds to production.
D) the less an additional unit of capital adds to production.

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