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Which of the statements about the law of diminishing marginal returns is correct? a.As the size of a firm's plant increases, average cost eventually decreases.
Which of the statements about the law of diminishing marginal returns is correct?
a.As the size of a firm's plant increases, average cost eventually decreases.
b.As a firm uses more of a variable input, holding the quantity of fixed inputs constant, the marginal product of the variable input eventually diminishes.
c.As a firm makes more investment in capital, marginal product of capital eventually decreases.
d.As a firm hires more workers, total product eventually decreases.
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