According to the law of diminishing returns
A)Production increases at a decreasing rate
B)Production increases at a increasing rate
C)Production decreases at a decreasing rate
D)Production decreases at an increasing rate

Question

​According to the law of diminishing returns
A)​Production increases at a decreasing rate
B)Production increases at a increasing rate
C)Production decreases at a decreasing rate
D)​Production decreases at an increasing rate

Quizplus · Accepted Answer

According to the law of diminishing returns, as additional units of a variable input are added to fixed inputs, the marginal product of the variable input will eventually decrease. This leads to production increasing at a decreasing rate, which is choice A.

​According to the Law of Diminishing Returns

According to the Law of Diminishing Returns