Which of the following are correct? According to the law of diminishing returns, (1)marginal product eventually rises.
(2)marginal product eventually falls.
(3)marginal cost eventually rises.
(4)marginal cost eventually falls.
A)(1)and (3)
B)(1)and (4)
C)(2)and (3)
D)(2)and (4)
E)(4)

Question

Quizplus · Accepted Answer

According to the law of diminishing returns, as more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually fall. This means that choice (2) is correct. Additionally, as more units of a variable input are added, the total costs will eventually increase at a faster rate than the total output, leading to an increase in marginal costs. Therefore, choice (3) is also correct. Choices (1) and (4) are incorrect as they do not align with the law of diminishing returns.

Which of the Following Are Correct? According to the Law