Table 2.4 -The Principle of Diminishing Returns Does NOT Apply to Labor

Multiple Choice

Table 2.4
-The principle of diminishing returns does NOT apply to labor when all inputs are allowed to vary because

A) a firm can build an additional production facility so each worker's share of the facility doesn't necessarily decrease.
B) eventually the marginal product of labor will begin to increase again.
C) a firm can fire inefficient workers.
D) None of the above. Diminishing returns always apply.