When additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing
A)diminishing returns.
B)negative returns.
C)accelerating returns.
D)decreasing production.
E)diseconomies of scale.

Question

Quizplus · Accepted Answer

Diminishing returns occur when the additional input leads to a smaller and smaller increase in output. This means that the cost per unit of output increases, resulting in lower efficiency and productivity.

When Additions of Input to a Fixed Quantity of Another