The law of diminishing returns explains why:

Question

Quizplus · Accepted Answer

The law of diminishing returns states that when additional units of a variable input are added to a fixed input, the marginal product (output per additional unit of input) will eventually decline. As the marginal product falls, marginal cost (the additional cost of producing one more unit of output) rises because more and more variable inputs must be used to produce each additional unit of output. Therefore, A is the correct answer. B and D are unrelated to the law of diminishing returns, and C is incorrect because marginal product and marginal cost are inversely related, not directly related.

The Law of Diminishing Returns Explains Why