The Law of Diminishing Marginal Returns

Multiple Choice

The law of diminishing marginal returns

A) results in average variable cost (AVC) , average total cost (ATC) , and marginal cost (MC) curves eventually increasing at an increasing rate.
B) results in MC but not ATC curves eventually increasing at an increasing rate.
C) causes average fixed costs to decline continuously as output increases.
D) causes the difference between average total cost and average variable cost to shrink as output increases.