Diminishing marginal returns do not exist for increases in

Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when each additional unit of a variable input (such as labor or capital) leads to a smaller increase in output. However, total factor productivity (TFP) refers to efficiency and technological progress, which can result in increasing rather than diminishing returns. Therefore, choice C is the best answer as it does not experience diminishing marginal returns.

Diminishing Marginal Returns Do Not Exist for Increases in