The law of diminishing returns indicates that: a. as extra units of a variable resource are added to a fixed resource the marginal product will decline beyond some point. b. because of economies and diseconomies of scale a competitive firm's long-run average cost curve will be U-shaped. c. the demand for goods produced by purely competitive industries is downsloping. d. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.