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-Refer to the Above Table

Question 72

Multiple Choice

  -Refer to the above table. Which of the following statements is correct? A)  The table follows economic principles because in an increasing cost industry, increases in a variable input will lead to increase in output. B)  The table does not follow economic principles because in an increasing cost industry, increases in a variable input will lead to decrease in output. C)  The table follows economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to a decrease in the marginal physical product. D)  The table does not follow economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to an increase in the marginal physical product.
-Refer to the above table. Which of the following statements is correct?


A) The table follows economic principles because in an increasing cost industry, increases in a variable input will lead to increase in output.
B) The table does not follow economic principles because in an increasing cost industry, increases in a variable input will lead to decrease in output.
C) The table follows economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to a decrease in the marginal physical product.
D) The table does not follow economic principles because the law of diminishing marginal product predicts that increase in a variable input will eventually lead to an increase in the marginal physical product.

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