MCQOPTIONS
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| 1. |
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 |
| Answer» D. the marginal product will increase | |