The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase the value of the products by even a small amount requires a significant financial investment.
A) tragedy of the commons
B) diminishing returns
C) the Sullivan principle
D) supply-and-demand
E) purchasing power parity

Question

Quizplus · Accepted Answer

The concept of diminishing returns suggests that as a company continues to invest in adding value to its products, the additional value gained from further investment becomes smaller, requiring increasingly larger investments to achieve the same level of value increase.

The Concept of ________ Suggests That When a Company Has