The idea that the more any given resource is applied to production,the lower the marginal gain in output,until a point is reached where the additional inputs produce no additional value,is referred to as:
A)the point of no return.
B)the law of diminishing returns.
C)supply and demand.
D)network inelasticity.
E)virtual economics.

Question

Quizplus · Accepted Answer

The idea of the law of diminishing returns states that as more and more units of a variable input are added to a fixed input, the marginal product initially rises, reaches a maximum, and then subsequently decreases. This law holds true until a point is reached where the additional inputs produce no additional value.

The Idea That the More Any Given Resource Is Applied