The law of diminishing marginal returns implies increasing marginal cost.

Name: The law of diminishing marginal returns implies increasing marginal cost.
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Question

​ The law of diminishing marginal returns implies increasing marginal cost.

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input are added to a fixed input, eventually the marginal product will decrease. This means that each additional unit of the variable input will produce less output than the previous unit, leading to an increase in marginal cost. Therefore, the statement is true.

​ the Law of Diminishing Marginal Returns Implies Increasing Marginal

the Law of Diminishing Marginal Returns Implies Increasing Marginal