As flexibility is increased,
A)the marginal benefit of additional flexibility is decreased.
B)the marginal benefit of additional flexibility is increased.
C)the total cost of flexibility is decreased.
D)the total flexibility is decreased.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more of a variable input is added to a fixed input, the marginal benefit of each additional unit of the variable input will decrease. In the case of flexibility, as more flexibility is added, the marginal benefit of each additional unit of flexibility will decrease, leading to answer choice A.

As Flexibility Is Increased