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    Exam 11: Output and Costs
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    Diminishing Marginal Returns Occur When
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Diminishing Marginal Returns Occur When

Question 167

Question 167

Multiple Choice

Diminishing marginal returns occur when


A) the average product of the variable input eventually diminishes.
B) the marginal product of an additional worker is less than the marginal product of the previous worker hired.
C) the firm hires cheap, less-skilled workers in place of expensive, high-skilled workers.
D) total product diminishes.

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