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

Question

Quizplus · Accepted Answer

Diminishing returns occur when one of the inputs to the production process (such as labor, capital, or land) is fixed and cannot be increased in the short term. As more of the variable input (such as labor) is added, the marginal product (the additional output produced by each additional unit of the variable input) eventually decreases, leading to diminishing returns.

Diminishing Returns Occurs Because