A reason a nation faces diminishing returns along a production function is because

Question

Quizplus · Accepted Answer

Diminishing returns occur when the marginal product of a variable input (such as labor) decreases as the quantity of the input increases, holding all other inputs constant. In the long run, the quantity of physical capital is fixed, so adding more labor will eventually result in diminishing returns as the production function becomes flatter. Therefore, choice C is the best answer.

A Reason a Nation Faces Diminishing Returns Along a Production