The Law of Diminishing Marginal Returns States That

Multiple Choice

The law of diminishing marginal returns states that

A) long-run average cost declines as output increases
B) if the marginal product is above the average product, the average will rise
C) as units of a variable input are added to a given amount of fixed inputs, the marginal product of the variable input eventually diminishes
D) as a person consumes more of a good, the marginal satisfaction from that good eventually diminishes
E) if marginal product is positive, total product rises