The law of diminishing returns begins at the level of output where:

CA Foundation · Business Economics · MTP · June 2024
The law of diminishing returns begins at the level of output where:
(A) A. marginal cost is at a minimum.
(B) B. average variable cost is at a minimum.
(C) C. average fixed cost is at a maximum.
(D) D. None of the above is correct.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. marginal cost is at a minimum.

Topics: Theory of Production and Cost

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