Diminishing returns are a reason:
A) the marginal cost curve is downward-sloping.
B) fixed costs remain constant.
C) the marginal cost curve is upward-sloping.
D) the average fixed cost curve is downward-sloping.

Question

Quizplus · Accepted Answer

Diminishing returns occur when adding an additional factor of production results in smaller increases in output, leading to higher marginal costs, thus making the marginal cost curve upward-sloping.

Diminishing Returns Are a Reason