Diminishing marginal returns occurs when Select one: O a. both total physical product (TPP) and marginal physical product (MPP) are decreasing. b. total physical product (TPP) is increasing and marginal physical product (MPP) is decreasing. O total physical product (TPP) is decreasing and marginal physical product (MPP) is increasing O d. both total physical product (TPP) and marginal physical product (MPP) are increasing. A feasible production combination for a firm producing two outputs must be Select one: O a. on the PPF at a point halfway between the two axes O b. On the production possibilities frontier (PPF) or inside the PPF O c Only inside the PPF O d. Only on the production possibilities frontier (PPF) on 3 If the Marginal Value Product is more than Price of the input, then to maximize profits: ot Select one: O a. Variable input must be increased. O b. Fixed input must be increased. O c. All statements are incorrect. manale innut muist he decreased A producer discovers that it she were to increase her firm's quantity (0) from 300 to 400 units per day in the short run the average cost per unit of quantity (AC) would decrease. She can conclude that from 300 to 400 units of quantity produced, Select one a marginal cost (MC) decreases O b. All statements are incorrect. total forced cost (TFC) decreases O d. total cost (T) decreases. It is irrational to produce in zone 3 of a production function Select one All statements are correct b. As the efficiency of the fixed factor is decreasing and the efficiency of the variable factor increasing. C.C. As the efficiency of both fixed and variable factors are increasing d. As the efficiency of toth feed and variable factors are decreasing