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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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