Which of the following statements is true? a. The law of diminishing returns states that beyond some

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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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Survey Of Economics

ISBN: 9780357720806

11th Edition

Authors: Irvin B. Tucker

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