The law of diminishing marginal productivity holds:
A) when all inputs are variable.
B) in the long run.
C) when all inputs are fixed.
D) in the short run.

Name: The law of diminishing marginal productivity holds: A) when all inputs are variable. B) in the long run. C) when all inputs are fixed. D) in the short run.
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Quizplus · Accepted Answer

The law of diminishing marginal productivity applies in the short run when at least one input is fixed, and adding more of a variable input results in smaller increases in output.

The Law of Diminishing Marginal Productivity Holds