When there are decreasing marginal returns:
A) the slope of the graph never increases but sometimes decreases.
B) the slope of the graph never decreases but sometimes increases.
C) the graph always consists of a smooth curve.
D) the graph always consists of a series of line segments.
E) separable programming should not be used.

Question

Quizplus · Accepted Answer

When there are decreasing marginal returns, it means that adding more units of input results in a less than proportional increase in output. As a result, the slope of the graph (which represents the marginal product of the input) will eventually start to decrease. The slope may not increase again, but it may continue to decrease or remain constant. Therefore, choice A is the best answer.

When There Are Decreasing Marginal Returns