Diminishing Marginal Returns Occur When

question 39

Multiple Choice

Diminishing marginal returns occur when:

• A) each additional unit of a variable factor adds more to the total output than the previous unit.
• B) each additional unit of a variable factor adds less to the total output than the previous unit.
• C) the marginal product of a variable factor is increasing at a decreasing rate.
• D) the total product decreases.

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