Diminishing returns occurs because
A) not enough people have jobs.
B) one of the inputs in the production process is fixed.
C) consumers don't buy enough of the products produced.
D) two people have not satisfied their self-interests.

Question

Quizplus · Accepted Answer

Diminishing returns occurs when one of the inputs in the production process is fixed, meaning that increasing the amount of other inputs beyond a certain point will result in diminishing marginal returns. This is because the fixed input acts as a bottleneck, limiting the overall level of output.

Diminishing Returns Occurs Because