1. Diminishing marginal returns means as you add more and more of a ______ input to a ______ input, the additional ______ goes ______.

A) fixed; variable; output; down.
B) variable; fixed; output; down.
C) fixed; variable; cost; up.
D) variable; fixed; cost; up.
E) both answers B) and D) are correct.

2. Diminishing marginal returns occurs

A) beyond the lowest point on ATC.
B) beyond the lowest point on AVC.
C) beyond the lowest point on MC.
D) starting at the lowest point on ATC.
E) starting with the lowest point on MC.

3. With diminishing marginal returns occurring, the marginal product ______ and marginal costs ______.

A) falls; rises.
B) falls; falls.
C) rises; falls.
D) rises; rises.
E) stays the same; rises.