The "law of diminishing marginal returns" applies to:
A)the short run, but not the long run.
B)the long run, but not the short run.
C)both the short run and the long run.
D)neither the short run nor the long run.

Question

Quizplus · Accepted Answer

The "law of diminishing marginal returns" primarily applies to the short run because it is during this period that at least one factor of production is fixed, leading to decreased additional output from each additional unit of variable input. In the long run, all factors of production can be varied, so the concept doesn't directly apply.

The "Law of Diminishing Marginal Returns" Applies To