Multiple Choice
The law of diminishing marginal returns states
A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline.
B) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline.
C) that in the presence of a fixed factor, at some point average product of labor starts to fall as more and more variable inputs are added.
D) average total costs of production initially fall and after some point starts to rise at a decreasing rate as output increases.
Correct Answer:

Verified
Correct Answer:
Verified
Q214: Golda Rush quit her job as a
Q215: The average total cost of production<br>A)is the
Q216: A characteristic of the long run is<br>A)there
Q217: Suppose Argyle Sachs has to choose between
Q218: When firms analyze the relationship between their
Q220: When a firm produces more output using
Q221: Diminishing marginal product of labor occurs when
Q222: Bill owns "Bill's Home of Blues" a
Q223: When a firm experiences negative technological change
Q224: Which of the following statements is true?<br>A)Opportunity