According to the law of diminishing returns, what happens as more of a variable factor is combined with a fixed factor?
1 )
An increase in the price of the variable factor will eventually result in an increase in production costs.
2 )
A reduction in the quality of the variable factor will eventually result in an increase in production costs.
3 )
Fewer units of the variable factor will be needed to produce equal increases in output.
The proportions in which the factors are combined will eventually result in progressively smaller increases in output.
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