The law of diminishing marginal returns says that as the firm uses more of ________, with a given quantity of ________, the ________ product of the variable input eventually diminishes.
A) a fixed input; variable inputs; marginal
B) all inputs; capital; average
C) a variable input; fixed inputs; average
D) a variable input; fixed inputs; marginal

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more of a variable input (like labor) is added to a fixed input (like machinery), the additional output (marginal product) from each additional unit of the variable input will eventually decrease.

The Law of Diminishing Marginal Returns Says That as the Firm