The law of diminishing returns states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors, then

Exam Question

The law of diminishing returns states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors, then

• 1. the marginal product and the average product of the variable factor will eventually decrease
• 2. total product will eventually begin to fall
• 3. the average product will eventually decrease with constant marginal product
• 4. the marginal product will eventually decrease with constant average product
• 5. the average product will eventually decrease, but only if total product is held constant

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