The law of diminishing returns states that as
A) the size of a plant increases, the firm's fixed cost decreases.
B) the size of a plant increases, the firm's fixed cost increases.
C) a firm uses more of a variable input, given the quantity of fixed inputs, the marginal product of the variable input eventually diminishes.
D) a firm uses more of a variable input, given the quantity of fixed inputs, the firm's average total cost will decrease eventually.
C
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Total efficiency units of labor in an economy increases if ________
A) the average number of hours worked by each worker decreases B) each worker becomes more productive C) each worker earns a lower wage D) the amount of capital available to each worker diminishes
Government's role of taxing some citizens and transferring income to others is considered:
A) enforcing a legal system. B) providing certain goods and services. C) redistributing income. D) maintaining the money supply.