The Law of Diminishing Returns Explains Why

question 104

Multiple Choice

The law of diminishing returns explains why:

• A)when marginal product falls, marginal cost rises.
• B)economies of scale exist.
• C)marginal product and marginal cost are directly related.
• D)AFC declines over the entire range of output in the long run.
• E)firms produce at the minimum point on the MC curve.

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