The law of diminishing marginal returns
A)sets in because not all workers are equally productive.
B)applies only in the short run.
C)holds even when there are no fixed factors.
D)ultimately explains why production displays diseconomies of scale.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns applies only in the short run because it assumes that at least one factor of production is fixed, leading to decreased additional output with the addition of more variable inputs.

The Law of Diminishing Marginal Returns