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Saved The law of diminishing marginal productivity explains why short-run production costs increase directly with a firms le
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Answer - False, the law of diminishing marginal productivity explains why short run production costs increases directly with a firm's level of output.

Explanation- The law of diminishing marginal productivity states that as we employ more and more units of an input then the productivity declines with the increase in labor. It means as more and more labor is hired then the output increase but less than the increase in an input as a labor by keeping other factor constant such as capital, land etc.

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