Diminishing returns occur when the
A)marginal product of an input is positive.
B)marginal product of an input is zero.
C)marginal product of an input is decreasing.
D)total product of an input is zero.
E)total product of an input is negative.

Question

Quizplus · Accepted Answer

Diminishing returns occur when the marginal product of an input (the additional output produced by each additional unit of input) decreases as more of that input is used. This is different from when the marginal product is positive or zero, and it pertains specifically to the marginal product, not the total product. Therefore, the correct answer is C.

Diminishing Returns Occur When the