The law of diminishing returns begins to operate when the ____________
A. total product begins to rise B. total product begins to fall C. Marginal product begins to rise D. Marginal product begins to fall
Correct Answer: D
Explanation
The law of diminishing return states that "productivity of a variable factor first rises as it is combined with fixed factor, but as the units combined with the fixed factor increases. productivity reaches its peak and then begins to fall. This point where productivity begins to fall marks the point where productivity begins to fall marks the point where diminishing return sets in.
