Which of the following statements is true? a. The law of diminishing returns states that beyond some
Question:
Which of the following statements is true?
a. The law of diminishing returns states that beyond some point, the marginal product of a variable resource continues to rise.
b. The marginal product is the change in total output by adding one additional unit of a fixed input.
c. Fixed costs are costs that vary with the output level.
d. If marginal productivity of a variable input falls, then marginal costs of production must rise.
e. When marginal cost is below average cost, average cost rises; when marginal cost is above average cost, average cost falls.
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