In the long run, diminishing returns would
A) not exist because no input is held constant.
B) not exist because all inputs are held constant.
C) still exist at a lesser degree because inputs are allowed to vary.
D) exist at a greater degree, because all inputs are allowed to vary.

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, meaning firms can adjust all factors of production. This flexibility eliminates the concept of diminishing returns, which arises from the short-run constraint of at least one fixed input.

In the Long Run, Diminishing Returns Would