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The Law of Diminishing Returns

Question 12

Multiple Choice

The law of diminishing returns:


A) deals specifically with the diminishing marginal product of fixed input factors.
B) states that the marginal product of a variable factor must eventually decline as increasingly more is employed.
C) can be derived deductively.
D) states that as the quantity of a variable input increases, with the quantities of all other factors being held constant, the resulting output must eventually diminish.

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