Diminishing marginal returns implies
A) decreasing average variable costs.
B) decreasing marginal costs.
C) increasing marginal costs.
D) decreasing average fixed costs.

Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when adding an additional factor of production results in smaller increases in output, which typically leads to increasing marginal costs as more resources are required to produce each additional unit.

Diminishing Marginal Returns Implies