Which of the following is an implication of the law of diminishing returns?
A) Total output will decline as more workers are hired.
B) In the long run, average total cost will eventually decline as output is expanded.
C) In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost.
D) A doubling of all inputs will lead to more than a doubling of output.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that adding more of one factor of production, while holding others constant, will eventually yield lower per-unit returns, leading to increased marginal and average costs in the short run.

Which of the Following Is an Implication of the Law