Diminishing marginal returns lead to diminishing returns

Name: Diminishing marginal returns lead to diminishing returns
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when each additional unit of input results in a smaller increase in output than the previous unit. When this trend continues to the point where additional units of input result in a decrease in output, it becomes negative marginal returns. At this point, the output starts to diminish, leading to overall diminishing returns.

Diminishing Marginal Returns Lead to Diminishing Returns