Economics 9708 · AS & A Level · Factors of production

Factors of production — practice question

Which condition is not needed for the law of diminishing returns to operate in the short run?

  • AAt least one factor will be fixed in quantity.
  • BAverage returns to a variable factor will increase then fall.
  • CMarginal product of a variable factor will increase then fall.
  • DInputs of all of the factors will be variable.

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