If successive unit of labour are added to a piece of land while capital and technology remains constant, a point will be reached in the level of production when each additional unit of labour will add less to the output than previous units. This concept is known as

A. productivity of labour
B. law of diminishing marginal utility
C. law of diminishing returns  
D. law of diminishing returns of a variable factor
E. internal economies of sales

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Correct Answer: C