Economics · Theory of Production
According to the Law of Diminishing Returns (Increasing Cost), as more units of a variable factor are employed, what happens to its productivity?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Marginal product increases
- 2Average cost decreases continuously
- 3Total product decreases immediately
- 4Marginal product decreases✓
Correct answer
Marginal product decreases
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