If diminishing returns exist, then
A) Each unit produced will cost incrementally less.
B) Each unit produced will cost incrementally more.
C) The total cost curve will be flat.
D) The total cost curve will be negatively sloped.

Question

Quizplus · Accepted Answer

Diminishing returns mean that as more units of a product are produced, the marginal cost of producing each additional unit increases. This results in a higher total cost of production, making each unit cost incrementally more than the previous one. Therefore, option B is the correct choice.

If Diminishing Returns Exist, Then