If Equal Increments of One Variable Input Are Added While

question 46

Multiple Choice

If equal increments of one variable input are added while keeping the amounts of all other inputs fixed, and decreasing additions to total product begin, then:

• A) diminishing marginal returns have begun.
• B) the firm is employing the least cost combination of inputs.
• C) returns to scale are constant.
• D) returns to scale are decreasing.
• E) returns to scale are increasing.