Diminishing marginal returns means that as you combine more units of a variable resource with a...
Question:
Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
a. the marginal physical product of the variable input decreases.
b. the average physical product of the fixed inputs increases at an increasing rate.
c. the marginal physical product of the variable input increases at a decreasing rate.
d. the total output decreases.
e. the marginal physical product of the variable input increases at a constant rate.
Marginal Return:
Marginal return means the additional return or we can say it is the change in the total return when more variable input is used in the production.
Answer and Explanation: 1
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Law of Diminishing Returns: Definition & Examples
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Chapter 10 / Lesson 8
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Learn about the law of diminishing returns, or diminishing marginal returns. See the point of diminishing returns graphed and how to calculate it with examples.
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