Multiple Choice
The concept of diminishing marginal returns implies that
A) output cannot decrease as long as labor is substituted for capital
B) output decreases if either labor or capital is decreased
C) output increases but at a decreasing rate as the amount of labor is increased and the amount of capital remains fixed
D) if the capital stock is kept constant, output cannot increase even if more labor is available
E) output increases but only if the amounts of both labor and capital increase
Correct Answer:

Verified
Correct Answer:
Verified
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