Diminishing returns refers to the decrease in
A)profit that results from increases in output.
B)average total cost that results from decreases in input prices.
C)average product that results from increases in the variable input.
D)marginal product that results from increases in the variable input.
E)long-run average cost that results from increases in output.

Question

Quizplus · Accepted Answer

Diminishing returns refers to the decrease in marginal product that results from increases in the variable input. As more of the variable input is added to the production process, each additional unit of the input will lead to a smaller increase in output, resulting in diminishing marginal returns.

Diminishing Returns Refers to the Decrease in