The principle of diminishing returns implies that when one input increases while the other inputs are held fixed,output beyond some point will exhibit
A) increases at an increasing rate.
B) increases at a decreasing rate.
C) decreases at a decreasing rate.
D) decreases at an increasing rate.

Question

Quizplus · Accepted Answer

The principle of diminishing returns states that as more of one input is added to a fixed amount of other inputs, the additional output generated from the additional input will eventually decrease. This means output increases, but at a decreasing rate.

The Principle of Diminishing Returns Implies That When One Input