The law of diminishing returns applies in the:

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as more units of a variable input (such as labor) are added to a fixed input (such as capital), the marginal product of the variable input will eventually decrease. This has a greater impact in the short run due to the fixed input, but it can also apply in the long run as other factors become fixed or more difficult to change. Therefore, the law of diminishing returns applies in the short run only.

The Law of Diminishing Returns Applies in The