In Order for the Law of Diminishing Returns to Be

question 215

Multiple Choice

In order for the law of diminishing returns to be present, we must have

• A) at least one factor of production to be fixed.
• B) output decreasing as more laborers are hired.
• C) the price of labor increasing as more workers are hired.
• D) simultaneous changes in labor and capital.
• E) double the output when labor input is doubled.