The law of diminishing marginal returns CANNOT predict the effect of an additional unit of input when
A) all other inputs are fixed.
B) it is possible to vary the proportion in which the various inputs are used.
C) technology is changing.
D) output rises.
E) marginal product is falling.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns assumes that all other inputs are fixed and that technology is constant. If technology is changing, then the law may not apply.

The Law of Diminishing Marginal Returns CANNOT Predict the Effect