Diminishing marginal returns occur when the total product function is:
A)decreasing.
B)increasing at a decreasing rate.
C)increasing at a constant rate.
D)increasing at an increasing rate.

Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when adding more of a variable input to a fixed input increases output but at a decreasing rate, which is described as the total product function increasing at a decreasing rate.

Diminishing Marginal Returns Occur When the Total Product Function Is