Schweser June 08 Exam 2 Afternoon
39. The law of diminishing marginal returns explains:
A. the shape of the long-run average cost curve.
B. the upward sloping portion of the short-run marginal cost curve.
C. the initial decrease in the short-run average costs.
D. the upward sloping portion of the long-run marginal cost curve.
B is the answer. Why?
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