Question

The law of diminishing marginal returns holds for a situation in which Group of answer choices all inputs are variable. all inputs are fixed. some inputs are variable and some inputs are fixed. all inputs are increased in the same proportion.

Answer 1

The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.

What is the law of diminishing marginal returns?

The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).

In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.

Read more on diminishing marginal returns here: brainly.com/question/13767400

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