The law of diminishing returns:
A) applies only in the short run
B) is true only when all inputs are variable
C) implies that as we add more workers our output decreases
D) all of the above

Question

Quizplus · Accepted Answer

The law of diminishing returns applies only in the short run when at least one input is fixed, and it does not imply that output decreases, but rather that the additional output from each additional unit of input eventually decreases.

The Law of Diminishing Returns