In the long run,the law of diminishing marginal returns
A)is not relevant because there are no fixed factors of production.
B)sometimes holds,depending on the production process.
C)does hold,regardless of production process.
D)is exactly the same as in the short run.
E)does not hold because technology is a variable.

Question

Quizplus · Accepted Answer

In the long run, all factors of production are variable, so the law of diminishing marginal returns, which applies when at least one factor is fixed, is not relevant.

In the Long Run,the Law of Diminishing Marginal Returns