Suppose that a firm's average cost increases as it increases its output by expanding its plant...

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Suppose that a firm's average cost increases as it increases its output by expanding its plant and hiring additional workers (its only inputs to production). The firm's owner blames the increase in per-unit costs on the law of diminishing marginal productivity. The owner's reasoning is: O incorrect because economies of scale are present. O incorrect because all inputs are varied in this case (i.e., we're in the long run). correct because marginal productivity must decrease in the short-run. O correct because some inputs are fixed in the long-run. Suppose that a firm's average cost increases as it increases its output by expanding its plant and hiring additional workers (its only inputs to production). The firm's owner blames the increase in per-unit costs on the law of diminishing marginal productivity. The owner's reasoning is: O incorrect because economies of scale are present. O incorrect because all inputs are varied in this case (i.e., we're in the long run). correct because marginal productivity must decrease in the short-run. O correct because some inputs are fixed in the long-run.