APFIVE Principle Of Diminishing Marginal Returns
All of the following statements regarding diminishing marginal returns are true except:
A
Diminishing marginal returns imply that each successive unit of input always increases output by a larger amount.
B
After a certain level of input, additional units result in progressively smaller increases in output.
C
The principle of diminishing marginal returns explains why the marginal product of an input eventually declines.
D
Diminishing marginal returns are observed in many production processes as factors such as labor are added.