Microeconomic Theory
12th Edition
ISBN: 9781337517942
Author: NICHOLSON
Publisher: Cengage
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
Transcribed Image Text:The law of decreasing returns states that as a firm uses more of a
A) variable input, total output will increase indefinitely.
B)
variable input, with a given quantity of fixed inputs, the marginal product of
the variable input eventually decreases.
fixed input, with a given quantity of variable inputs, the marginal product of
the fixed input eventually decreases.
D) variable input, output will begin to fall immediately.
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