The Law of Diminishing Marginal Returns Implies That, in the Short

question 218

Multiple Choice

The law of diminishing marginal returns implies that, in the short run:

• A) output must fall beyond a certain point.
• B) price must fall beyond a certain point.
• C) the marginal product of the variable input must eventually decrease.
• D) wages of workers must eventually increase.
• E) total cost must fall beyond a certain point.

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