Which one of the statements is true?
A)Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept.
B)Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept.
C)Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept.
D)Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.

Question

Which one of the statements is true?​
A)​Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept.
B)Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept.
C)Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept.
D)​Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.

Quizplus · Accepted Answer

Diminishing returns occurs in the short run when the output of one variable factor or input has a lesser marginal product as additional variable factors are added. Decreasing returns to scale, on the other hand, occur in the long-run when a company raises all of its inputs proportionally by a specific amount, and output decreases.

Which One of the Statements Is True?​

Which One of the Statements Is True?