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 output.This is referred to as
A)the point of no return.
B)the law of diminishing returns.
C)supply and demand.
D)network inelasticity.
E)the invisible hand.

Question

Quizplus · Accepted Answer

The situation described in the question is known as the law of diminishing returns. This law states that as more and more of a resource is applied to production, the marginal gain in output eventually decreases until it reaches a point where additional inputs produce no additional output. This can be due to a variety of factors such as limited space, equipment, or labor. Therefore, the best choice is option B, the law of diminishing returns.

The More Any Given Resource Is Applied to Production,the Lower