There are diminishing returns to
A) only human capital.
B) only physical capital.
C) only natural resources.
D) only human capital and physical capital.
E) human capital,physical capital,and natural resources.

Question

Quizplus · Accepted Answer

Diminishing returns occur when there is an increase in one factor of production (e.g. human capital, physical capital, or natural resources) while all other factors remain constant, and this increase leads to a smaller and smaller increase in output. Therefore, it is the combination of all three factors that can ultimately lead to diminishing returns.

There Are Diminishing Returns to