Which of the following is not true about the law of diminishing returns?
A)It is a short-run phenomenon.
B)It refers to diminishing marginal product.
C)It will have an impact on the firm's marginal cost.
D)It divides Stage I and II of the production process.
E)All of the above are true.

Question

Quizplus · Accepted Answer

The law of diminishing returns does not divide Stage I and II of the production process; rather, it describes a phenomenon where, after a certain point, each additional unit of input results in a smaller increase in output. Stages of production are a broader concept that includes understanding how output changes with varying inputs, but the law itself specifically refers to the declining productivity of additional inputs.

Which of the Following Is Not True About the Law