If Each Additional Unit of Capital Increases a Firm's Yearly

question 25

Multiple Choice

If each additional unit of capital increases a firm's yearly output by a smaller amount than the previous unit of capital,and other inputs are held constant,then the firm is experiencing

• A)diminishing returns to scale
• B)negative marginal productivity of capital
• C)diminishing marginal productivity of capital
• D)capital depreciation
• E)diminishing marginal productivity of labor