The principle of diminishing returns implies that as one input increases while the other inputs are held fixed, output
A) increases at an increasing rate.
B) increases at a decreasing rate.
C) decreases at a decreasing rate.
D) decreases at an increasing rate.

Question

Quizplus · Accepted Answer

The principle of diminishing returns states that as one input increases while the other inputs remain fixed, the increase in output will eventually begin to decline. This means that output will increase at a decreasing rate. Therefore, the best choice is B.

The Principle of Diminishing Returns Implies That as One Input