Diminishing returns can be avoided by increasing the use of variable factors of production.

Name: Diminishing returns can be avoided by increasing the use of variable factors of production.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diminishing returns occur when increasing the use of variable factors of production, while keeping at least one factor fixed, leads to a decrease in the marginal output. Increasing the use of variable factors without changing the fixed factors will eventually lead to diminishing returns, not avoid them.

Diminishing Returns Can Be Avoided by Increasing the Use of Variable