# Diminishing marginal returns to short-run production begin when: A. the average product of labor...

## Question:

Diminishing marginal returns to short-run production begin when:

A. the average product of labor begins to fall.

B. the total product of labor begins to fall.

C. marginal product of labor becomes negative.

D. average variable cost begins to rise.

E. marginal product of labor begins to fall.

## The Law of Diminishing Marginal Returns:

The law of diminishing marginal returns states that while keeping all other factors inputs constant when the firm increases the use of one variable input, the per head contribution of the additional variable input to the total production will eventually fall.

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Chapter 4 / Lesson 6The law of diminishing marginal returns refers to the idea that the individual benefit of subsequent products or uses of a product decrease marginally over time. See how 'enough is enough', and calculate marginal returns using the curve to represent these decreases over time/uses.

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