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16) The law of diminishing marginal retums states A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline. B) that average total costs of production initially fall and at a later point starts to rise at a decreasing rate as output increases. C) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline. D) that in the presence of a fixed factor, at some point the average product of labor starts to fall as more and more variable inputs are added.

16) The law of diminishing marginal retums states A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline. B) that average total costs of production initially fall and at a later point starts to rise at a decreasing rate as output increases. C) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline. D) that in the presence of a fixed factor, at some point the average product of labor starts to fall as more and more variable inputs are added.

Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: The Cost Of Production
Section: Chapter Questions
Problem 2CQQ
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16) The law of diminishing marginal returns states A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline. B) that average total costs of production initially fall and at a later point starts to rise at a decreasing rate as output increases. C) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline. D) that in the presence of a fixed factor, at some point the average product of labor starts to fall as more and more variable inputs are added.
Transcribed Image Text:16) The law of diminishing marginal returns states A) that at some point, adding more of a fixed input to a given amount of variable inputs will cause the marginal product of the variable input to decline. B) that average total costs of production initially fall and at a later point starts to rise at a decreasing rate as output increases. C) that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to decline. D) that in the presence of a fixed factor, at some point the average product of labor starts to fall as more and more variable inputs are added.
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