The principle of diminishing returns implies that as one input increases while the other inputs are held fixed, output
A) increases at an increasing rate. B) decreases at a decreasing rate.
C) increases at a decreasing rate. D) decreases at an increasing rate.
Question 2
Which of the following equations is true of a profit-maximizing firm?
A) Wage = value of worker's marginal product B) Wage = worker's marginal product
C) Wage = worker's total product D) Wage = average product of all workers