What Does the Law of Diminishing Marginal Return State

question 34

Multiple Choice

What does the law of diminishing marginal return state?

• A)That at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline.
• B)That at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline.
• C)That in the presence of a fixed factor, at some point average product of labour starts to fall as more and more variable inputs are added.
• D)That average total costs of production initially fall and after some point start to rise at a decreasing rate as output increases.

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