If marginal output is rising it is possible to have
A)diminishing returns.
B)negative returns.
C)both diminishing returns and negative returns.
D)neither diminishing returns nor negative returns.

Question

Quizplus · Accepted Answer

If the marginal output is rising, it means that the additional output produced by adding one more unit of input is increasing. This implies that the production process is still efficient and there are no diminishing or negative returns. Therefore, the correct choice is D, which states that there are neither diminishing returns nor negative returns.

If Marginal Output Is Rising It Is Possible to Have