The idea that the more any given resource is applied to production, the lower the marginal gain in output, until a point is reached where the additional inputs produce no additional output, is referred to as:
A) the point of no return.
B) the law of diminishing returns.
C) supply and demand.
D) inelasticity.
E) virtual economics.

Question

Quizplus · Accepted Answer

The law of diminishing returns describes the decrease in marginal output that results from increasing the application of a particular input, such as labor or capital, while keeping other inputs constant. Eventually, a point is reached at which the additional input produces no additional output, and this is known as the point of diminishing returns.

The Idea That the More Any Given Resource Is Applied