Diminishing marginal returns implies that
A) marginal costs are decreasing.
B) marginal costs are increasing.
C) marginal costs are constant.
D) marginal costs may be increasing or decreasing.

Question

Quizplus · Accepted Answer

Diminishing marginal returns mean that the additional output achieved by adding one more unit of input is decreasing. This results in an increase in marginal costs as more and more input is added.

Diminishing Marginal Returns Implies That