The Law of Diminishing Returns Can Explain Why

question 32

Multiple Choice

The law of diminishing returns can explain why:

• A) Marginal cost eventually increases in the short run as more output is produced.
• B) The demand curve is typically downward sloping.
• C) The average fixed-cost curve declines as long as output increases.
• D) Marginal cost decreases as more output is produced.

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