The principle that "as one input increases while the other inputs are held fixed,output beyond some point will exhibit increases at a decreasing rate" is known as the
A) marginal principle.
B) principle of opportunity cost.
C) principle of diminishing returns.
D) spillover principle.

Question

Quizplus · Accepted Answer

The principle described is the principle of diminishing returns, which states that as one input increases while others are held fixed, output will eventually exhibit decreasing marginal returns, meaning that the increase in output for each additional unit of input will be less than the previous unit. This is often illustrated by a production function with a convex shape known as the law of diminishing returns. The other options, marginal principle, principle of opportunity cost, and spillover principle, do not accurately describe this concept.

The Principle That "As One Input Increases While the Other