The Law of Diminishing Returns Indicates That

Multiple Choice

The law of diminishing returns indicates that

A) as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
B) because of economies and diseconomies of scale, a competitive firm's long-run average total cost curve will be U-shaped.
C) the demand for goods produced by purely competitive industries is downsloping.
D) beyond some point, the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.