Diminishing returns begin to occur when the
A)slope of the ray from the origin reaches a maximum.
B)total product curve reaches a maximum.
C)slope of the total product curve reaches a maximum.
D)marginal product curve intersects the average product curve.

Question

Quizplus · Accepted Answer

Diminishing returns occur when the slope of the total product curve (which represents the amount of output produced by each input) reaches a maximum. This means that adding more inputs will result in smaller increases in output, indicating diminishing marginal returns. The other choices are not accurate descriptions of the point at which diminishing returns occur.

Diminishing Returns Begin to Occur When the