The law of diminishing returns explains why

A) total cost eventually rises faster and faster.
B) total cost eventually falls.
C) total cost eventually rises more and more slowly.
D) total cost eventually reaches a maximum point.

Question

Collin Greene · Accepted Answer

Final Answer : A, Explanation :  The law of diminishing returns, primarily applicable in the context of production, posits that adding more of one factor of production, while keeping others constant, will at some point yield lower per-unit returns. This concept impacts costs by making each additional unit more expensive to produce, leading to a scenario where total cost rises at an accelerating rate as more resources are inefficiently utilized.

The law of diminishing returns explains why

A) total cost eventually rises faster and faster.
B) total cost eventually falls.
C) total cost eventually rises more and more slowly.
D) total cost eventually reaches a maximum point.

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Learning Objectives

Related questions

The law of diminishing returns explains whyA) total cost eventually rises faster and faster.B) total cost eventually falls.C) total cost eventually rises more and more slowly.D) total cost eventually reaches a maximum point.

Definitions

Learning Objectives

Learning Objectives

Related questions

The law of diminishing returns explains why

A) total cost eventually rises faster and faster.
B) total cost eventually falls.
C) total cost eventually rises more and more slowly.
D) total cost eventually reaches a maximum point.