If additional unit of a variable factor input causes a fa...
If additional unit of a variable factor input causes a fall in the marginal product, this implies that
Total product starts declining
Average product has become zero
Diminishing returns has set in
Increasing returns is operating
Correct answer is C
Diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
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