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.

Practice Next
×
×