The Law of Diminishing Marginal Product States That

Multiple Choice

The law of diminishing marginal product states that

A) output will continue to increase indefinitely if more variable factors of production are added to an existing stock of fixed factors.
B) successive equal-sized increases in labor, when added to fixed factors of production, will result in smaller increases of output.
C) a doubling all inputs will double output.
D) variable costs tend to decrease with output.