The Law of Diminishing Marginal Returns States

Multiple Choice

The law of diminishing marginal returns states:

A) As the size of a plant increases,marginal product eventually decreases.
B) As the size of a firm's plant increases,average cost eventually decreases.
C) As a firm uses more of a variable factor of production,with a given quantity of the fixed factor of production,the marginal product of the variable factor eventually diminishes.
D) As a firm uses more of a variable factor of production,its average cost eventually decreases.
E) As a firm uses more of a variable factor or production,total product eventually decreases.