Question

Which statement below is TRUE? (Please explain why. Thanks!)

A. Decreasing returns to scale and diminishing returns to production are two ways of stating the

same production relationship.

B. The law of diminishing returns implies that variable inputs must eventually have negative

marginal products.

C. Constant returns to scale implies that in the short run, the marginal product of labor and the

average product of labor must eventually converge.

D. All the above are true.

E. None of the above is true.