As a Result of a Fire, a Small Business Owner

Multiple Choice

As a result of a fire, a small business owner loses some of her computers and other equipment. If the property of diminishing returns applies to all factors of production, she should expect to see

A) an increase in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
B) an increase in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.
C) a decrease in the marginal productivity of her remaining capital and an increase in the marginal productivity of her labor.
D) a decrease in the marginal productivity of her remaining capital and a decrease in the marginal productivity of her labor.