According to the Law of Diminishing Marginal Returns,as additional units of one input are employed as all other inputs are held constant,total output will eventually ______.
A) decrease
B) increase at an increasing rate
C) increase at a decreasing rate
D) increase at a constant rate

Question

Quizplus · Accepted Answer

The Law of Diminishing Marginal Returns states that as additional units of one input are employed as all other inputs are held constant, total output will eventually increase at a decreasing rate. In other words, there will come a point at which each additional unit of input will result in a smaller increase in output than the previous unit added. Eventually, adding more units of input will actually result in a decrease in total output, indicating that the point of diminishing returns has been reached.

According to the Law of Diminishing Marginal Returns,as Additional Units