Asked by Victoria Welch on Sep 23, 2024

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​According to the law of diminishing returns

A) ​Production increases at a decreasing rate
B) Production increases at a increasing rate
C) Production decreases at a decreasing rate
D) ​Production decreases at an increasing rate

Law of Diminishing Returns

An economic principle stating that if one factor of production is increased while other factors are held constant, the incremental output per unit of the increased factor will eventually decrease.

Decreasing Rate

A condition in which the rate or speed of a given process or phenomenon reduces over time.

Increasing Rate

A rate that accelerates or grows over time, often used in the context of compound interest, inflation, or the escalation of prices.

  • Understand the concept of diminishing returns and how production rates change over time.
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Caleigh Churchey3 days ago
Final Answer :
A
Explanation :
According to the law of diminishing returns, as additional units of a variable input are added to fixed inputs, the marginal product of the variable input will eventually decrease. This leads to production increasing at a decreasing rate, which is choice A.