The Law of Diminishing Marginal Returns States That as

Multiple Choice

The law of diminishing marginal returns states that as

A) a firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes.
B) a firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually.
C) the size of a plant increases, the firm's fixed costs decrease.
D) the size of a plant increases, the firm's fixed costs increase.