Which of the following best describes the law of diminishing returns?

Question

Quizplus · Accepted Answer

The law of diminishing returns applies to production and states that as more units of a variable factor (like labor) are added to a fixed factor (like a factory size), the marginal product of that variable factor will eventually decrease. This occurs because the fixed factor can only handle so much of the variable factor, leading to inefficiencies and diminishing returns. Option B is describing the law of diminishing marginal utility and option C is not related to the law of diminishing returns.

Which of the Following Best Describes the Law of Diminishing