If a firm is experiencing diminishing marginal returns,then _____
A)total output decreases as all resources are increased.
B)total output decreases as all resources are decreased.
C)total output decreases as one variable resource is increased, other things constant.
D)additional increments of output diminish as one variable resource is increased, other things constant.
E)additional increments of output increase as all variable resources are increased.

Question

Quizplus · Accepted Answer

Diminishing marginal returns means that the additional output gained from each additional unit of input decreases as the quantity of that input increases, holding all other inputs constant. Therefore, as only one variable resource is increased, other things constant, the additional increments of output diminish.

If a Firm Is Experiencing Diminishing Marginal Returns,then _____