The concept of diminishing returns implies that when a firm already has significant _____________ built into its product offering, increasing that value by a relatively small amount requires ________________ costs.

Question

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The concept of diminishing returns suggests that as a firm continues to increase a particular input (in this case, value built into its product offering), the additional benefits gained from that increase will eventually start to decline, requiring significantly higher costs for relatively smaller improvements in value.

The Concept of Diminishing Returns Implies That When a Firm