Why does the law of diminishing return not apply in the long run?
A)All the factors of production are fixed
B)There are no fixed factors of production
C)There are some fixed and some variable factors
D)The producer is required to produce a fixed level of output
E)The producer can change the level of output only by changing the variable factors,fixed factors remaining unchanged

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as one input variable is increased while others are held constant, eventually the marginal output per unit of the variable input will diminish. However, in the long run, all factors of production can be varied, which means there are no fixed factors of production, and therefore the law of diminishing returns does not apply.

Why Does the Law of Diminishing Return Not Apply in the Long