The Law of Diminishing Returns governs production:

Name: The Law of Diminishing Returns governs production:
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

The Law of Diminishing Returns applies in the short run because it describes a situation where, as additional units of a variable input (like labor) are added to a fixed input (like capital), the additional output produced from each new unit of input eventually decreases. This concept assumes at least one factor of production is fixed, which is typically the case in the short run.

The Law of Diminishing Returns Governs Production