If the slope of a graph never increases but sometimes decreases as the level of the activity increases, then it is said to have decreasing marginal returns.

Question

Quizplus · Accepted Answer

This is the definition of decreasing marginal returns, where as input increases, the additional output or benefit decreases. In other words, the slope of the graph becomes flatter as input increases, indicating diminishing returns.

If the Slope of a Graph Never Increases but Sometimes