Post Utme Joseph Ayo Babalola University 2017 Economics Question 1

Practice objective / multiple choice question 1 from the 2017 Post Utme Joseph Ayo Babalola University Economics examination.

Post Utme Joseph Ayo Babalola University 2017 Economics Objective / Multiple Choice
Question 1 POST_UTME_JOSEPH_AYO_BABALOLA_UNIVERSITY • 2017 • ECONOMICS • objective

The law of diminishing returns states that as the quantity of a variable input increases, while the quantity of a fixed input remains cons\tant, the marginal product of the variable input will eventually decrease. Which of the following best describes the law of diminishing returns?

Answer Options

A. The law of diminishing returns states that as the quantity of a variable input increases, the marginal product of the variable input will increase.
Correct Answer B. The law of diminishing returns states that as the quantity of a variable input increases, the marginal product of the variable input will eventually decrease.
C. The law of diminishing returns states that as the quantity of a variable input increases, the marginal product of the variable input will remain cons\tant.
D. The law of diminishing returns states that as the quantity of a variable input increases, the marginal product of the variable input will increase at a decrea\sing rate.
Correct Answer
B
Correct Option:
The law of diminishing returns states that as the quantity of a variable input increases, the marginal product of the variable input will eventually decrease.

About This Question

This is Post Utme Joseph Ayo Babalola University 2017 Economics Question 1. It is one of the objective questions from the 2017 Post Utme Joseph Ayo Babalola University Economics examination.

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