The law of diminishing returns
A) is reflected in the negatively sloped portion of the marginal product curve.
B) is the result of specialization and division of labor.
C) applies in both the short run and the long run.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

The law of diminishing returns is reflected in the negatively sloped portion of the marginal product curve, indicating that adding more of one input (while holding others constant) eventually leads to lower marginal gains.

The Law of Diminishing Returns