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The law of diminishing returns implies that: a given percentage increase in all

ID: 2506367 • Letter: T

Question

The law of diminishing returns implies that:

a given percentage increase in all inputs leads to that same percentage increase in output.

the proportional increase in output is larger than the underlying proportional increase in inputs.

output increases at a rate less than the proportionate increase in inputs.

none of these.

A.

a given percentage increase in all inputs leads to that same percentage increase in output.

B.

the proportional increase in output is larger than the underlying proportional increase in inputs.

C.

output increases at a rate less than the proportionate increase in inputs.

D.

none of these.

Explanation / Answer

output increases at a rate less than the proportionate increase in inputs.

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