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The Principle of the Diminishing Marginal Productivity of Capital Means

Question 93

Multiple Choice

The principle of the diminishing marginal productivity of capital means that


A) the total factor productivity increases with capital.
B) the total factor productivity declines with capital.
C) the marginal product of capital tends to decline as the amount of capital in use increases.
D) the marginal product of capital tends to decline as the amount of capital in use decreases.

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