Diminishing marginal returns are realised in the __________ and economies of scale in the__________ .
A) long run; short run
B) long run; long run
C) short run; long run
D) short run; short run

Question

Quizplus · Accepted Answer

Diminishing marginal returns occur in the short run when adding more of a variable input to a fixed input results in smaller increases in output. Economies of scale occur in the long run when increasing production leads to lower average costs.

Diminishing Marginal Returns Are Realised in the __________ and Economies