Under the law of diminishing returns, what occurs when increasing amounts of a variable factor are added to a fixed factor?
- AAn increase in the price of the variable factor will eventually result in an increase in production costs.
- BA reduction in the quality of the variable factor will eventually result in an increase in production costs.
- CFewer units of the variable factor will be needed to produce equal increases in output.
- DThe proportions in which the factors are combined will eventually result in progressively smaller increases in output.