Diminishing marginal returns relates to the:
A) rate at which output increases in the short run
B) way output decreases when we add more variable inputs in the short run
C) rate of substitution of one input for another
D) way output increases less than proportionately to all inputs

Question

Quizplus · Accepted Answer

Diminishing marginal returns refers to the decrease in the additional output produced when more units of a variable input are added to a fixed input in the short run, causing the rate of output increase to slow down.

Diminishing Marginal Returns Relates to The