Diminishing Marginal Returns Means That as You Combine More Units

question 80

Multiple Choice

Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:

• A)the average physical product increases at an increasing rate.
• B)the marginal physical product decreases.
• C)the total production decreases.
• D)the marginal physical product becomes negative.
• E)the marginal physical product increases at a decreasing rate.

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