According to the principle of diminishing returns, if all factors of production but one are held constant and if that one factor is doubled, then eventually output will most likely
A) double too.
B) less than double.
C) more than double.
D) remain unchanged.

Question

Quizplus · Accepted Answer

According to the principle of diminishing returns, as more and more of a variable factor is added to a fixed quantity of other factors, the additional output produced by each additional unit of the variable factor will eventually fall. Hence, if all factors of production but one are held constant and if that one factor is doubled, then eventually output will less than double. This is because eventually the fixed factors become limiting factors, and their fixed quantity restricts the amount of output that can be produced.

According to the Principle of Diminishing Returns, If All Factors