In the long run, the law of diminishing marginal returns
A) is not relevant because there are no fixed factors of production.
B) does not hold because technology is a variable.
C) does hold, regardless of production process.
D) sometimes holds, depending on the production process.
E) is exactly the same as in the short run.

Question

Quizplus · Accepted Answer

In the long run, all factors of production are variable, so the concept of fixed factors, which is central to the law of diminishing marginal returns, is not relevant.

In the Long Run, the Law of Diminishing Marginal Returns