The law of diminishing returns applies only in the long run when the fixed cost can be flexible.

Name: The law of diminishing returns applies only in the long run when the fixed cost can be flexible.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

The law of diminishing returns applies to both the short and long run, and it is related to the variable input in production, not the fixed cost. Additionally, fixed costs are typically not flexible in the short run as they are determined by the level of output decided upon in the planning stage.

The Law of Diminishing Returns Applies Only in the Long