The principle of diminishing marginal product states:
A. the total output produced decreases as the quantity of the input increases.
B. the total output produced increases as the quantity of the input increases.
C. the marginal product of an input decreases as the quantity of the input increases.
D. the marginal product of an input eventually will be negative.
Answer: C
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As long as the expected marginal benefit of keeping a unit in inventory ________ the ________, the unit should be added to the inventory.
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