Multiple Choice
Which of the following statements is true?
A) Due to fixed resources, an additional unit of labour always adds more to production.
B) The marginal product of labour always increases when an additional unit of labour is employed.
C) Diminishing returns is a rare situation that occurs only when all inputs are not fixed.
D) The law of diminishing returns indicates that addition of an extra unit of a variable factor will decrease the marginal product.
Correct Answer:
Verified
Correct Answer:
Verified
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