At that amount of output where diminishing marginal returns first sets in,
A)average product begins to decrease.
B)total product begins to decrease.
C)marginal cost begins to decrease.
D)marginal product begins to decrease.
E)All of the above.

Question

Quizplus · Accepted Answer

Diminishing marginal returns refers to the point where each additional unit of input produces less additional output than the previous unit of input. This means that marginal product begins to decrease as more inputs are added, indicating that the additional output gained from adding an extra unit of input is decreasing. Therefore, the correct answer is D.

At That Amount of Output Where Diminishing Marginal Returns First