Once diminishing returns have set in,each additional unit of the variable input:
A)decreases total output.
B)adds less to total output.
C)adds more to total output.
D)does not affect total output.

Question

Quizplus · Accepted Answer

Diminishing returns occur when the marginal product of the variable input decreases as more units of that input are added. This means that each additional unit of the variable input will add less to total output than the previous unit, but it will still add something. Therefore, the correct answer is B: each additional unit of the variable input adds less to total output.

Once Diminishing Returns Have Set In,each Additional Unit of the Variable