The Law of Diminishing Returns States That If Increasing Quantities

question 68

Multiple Choice

The law of diminishing returns states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors, then

• A) the AP will eventually decrease, but only if TP is held constant.
• B) TP will eventually begin to fall.
• C) the MP will eventually decrease with constant AP.
• D) the MP and the AP of the variable factor will eventually decrease.
• E) the AP will eventually decrease with constant MP.

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