Which of the Following Statements Best Expresses the Law of Diminishing

question 23

Multiple Choice

Which of the following statements best expresses the law of diminishing marginal returns?

• A)Because large-scale production allows the realization of increasing returns to scale, the costs of production vary directly with the level of output.
• B)Population growth automatically adjusts to that level at which the average product per worker will be at a maximum.
• C)As successive amounts of one resource (labour) are added to fixed amounts of other resources, beyond some point the resulting extra output will decline.
• D)The same percentage increase in all inputs will result in a lower percentage increase in total output.
• E)The same percentage increase in all inputs will result in a higher percentage increase in total output.