Which of the following best describes production in the short run?
A) It can be increased using either labour or capital.
B) It is subject to the law of diminishing marginal product.
C) It may exhibit increasing, decreasing, or constant returns to scale.
D) It is subject to the law of demand.

Question

Quizplus · Accepted Answer

In the short run, production is subject to the law of diminishing marginal product, which states that as more units of a variable input (usually labor) are added to a fixed input (usually capital), the marginal product of the variable input will eventually decrease. This means that at some point, adding more workers will not result in an increase in output.

Which of the Following Best Describes Production in the Short