The Law of Diminishing Marginal Returns Is Encountered as Increasing

Multiple Choice

The law of diminishing marginal returns is encountered as increasing amounts of labour are hired because:

A) as production rises, the additional labor hired is less and less skilled.
B) experienced workers are hired before the less skilled.
C) each extra worker hired decreases the amounts of land and capital per worker, so the work place becomes more congested and managerial control becomes more difficult.
D) as more and more is produced, selling it requires cutting prices.