What happens to the average product during the stage of diminishing returns in the Law of Variable Proportions? It increases. It decreases. It becomes negative. It remains constant.

A decreasing total product indicate A. The concept of diminishing returns B. Law of variable proportion C. internal diseconomies of scale D. external diseconomies of scale

The law of diminishing returns implies that: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.

What is the initial phase of the Law of Variable Proportions, where the marginal product of the variable input increases? Diminishing returns phase Increasing returns phase Negative returns phase Constant returns phase

State the law of diminishing returns

The law of diminishing marginal productivity states that, as more of a variable input is added to a fixed input, the:Question 5Answera.Marginal product of the variable input will eventually decrease.b.Total product will increase indefinitely.c.Average total cost will decrease.d.Fixed input will become variable.