Question

12) The law of diminishing marginal returns states: A) As the size of a firm's plant increases, average cost eventually decreases. B) As a firm uses more of a variable factor of production, its average cost eventually decreases. As the size of a plant increases, marginal product eventually decreases. D) As a firm uses more of a variable factor or production, total product eventually decreases. E) As a firm uses more of a variable factor of production, with a given quantity of the fixed factor of production, the marginal product of the variable factor eventually diminishes.