Which of the following statements describes the presence of diminishing returns. Holding at least one factor constant …....
A)the marginal product of a factor is positive and rising.
B)the marginal product of a factor is positive but falling.
C)the marginal product of a factor is falling and negative.
D)the marginal product of a factor is constant.

Question

Quizplus · Accepted Answer

Diminishing returns occur when the marginal product of a factor of production is positive but decreasing as more of the factor is utilized, assuming other factors are held constant. This reflects a decrease in the additional output gained from using one more unit of the factor.

Which of the Following Statements Describes the Presence of Diminishing