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      Question

      The marginal product of a factor input initially rises

      with its employment level, but after reaching a certain level of employment, it starts falling. This is stated in
      A Law of Diminishing marginal returns Correct Answer Incorrect Answer
      B Law of Opportunity Cost Correct Answer Incorrect Answer
      C Law of Substitution Correct Answer Incorrect Answer
      D Principle of Least Cost Combination Correct Answer Incorrect Answer

      Solution

      The law of Diminishing marginal returns state that the marginal product of a factor input initially rises with its employment level, but after reaching a certain level of employment, it starts falling.

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