If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes
A)economies and diseconomies of scale.
B)X-inefficiency.
C)the law of diminishing returns.
D)the law of diminishing marginal utility.

Question

Quizplus · Accepted Answer

The statement describes the law of diminishing returns, which posits that if one factor of production (variable input) is increased while other factors (fixed inputs) are held constant, the incremental output (extra output) will eventually decrease.

If a Variable Input Is Added to Some Fixed Input