The law of diminishing returns assumes that:
A) there is at least one fixed input.
B) all inputs are changed by the same percentage.
C) additional inputs are added in smaller and smaller increments.
D) all inputs are held constant.

Question

Quizplus · Accepted Answer

The law of diminishing returns occurs when, in a production process, at least one input is fixed, leading to a point where adding more of a variable input yields progressively smaller increases in output.

The Law of Diminishing Returns Assumes That