The Principle of Diminishing Marginal Productivity Implies That

question 111

Multiple Choice

The principle of diminishing marginal productivity implies that

• A)if we increase labour and capital,the output will eventually decrease.
• B)if we decrease labour and capital,the output will decrease.
• C)if we increase one input while keeping other inputs constant,the productivity of variable input will decrease.
• D)if we increase one input while keeping other inputs constant,the output will decrease.

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