According to the Law of Diminishing Returns, in a production function when more and more units of the variable factor are used, holding the quantities of a fixed factor constant, a point is reached beyond which
- A.the marginal revenue will diminish
- B.the average revenue will diminish
- C.the marginal product will diminish
- D.the marginal product will increase
Show answer
When one input is kept fixed and another is added again and again, each extra unit eventually adds less to output than the one before.
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