Question:

Which of the following statements describes the presence of diminishing returns. Holding at least one factor constant …….

A.

The marginal product of a factor is positive and rising.

B.

The marginal product of a factor is positive but falling.

C.

The marginal product of a factor is falling and negative.

D.

The marginal product of a factor is constant.

Answer» b. The marginal product of a factor is positive but falling.