One Reason for the Appearance of Diminishing Returns Is That

question 66

Multiple Choice

One reason for the appearance of diminishing returns is that

• A) each additional unit of an input has proportionately less of the other units with which to work.
• B) the fixed inputs cannot produce any more as more units of a variable input are added.
• C) whenever inputs are added to a production process, output falls because of increased inefficiency.
• D) the marginal product continually rises whenever output is increased.
• E) specialization becomes impossible as more units of a variable input are added to a fixed input.

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