Question

This means that in a production system with fixed and variable inputs, beyond some point, each additional unit of variable input yields less and less additional output.

Answer 1

Answer:

The correct answer to the following question will be "Law of Diminishing Returns".

Explanation:

This law is just an economic ideology that explains how, at a certain point, that employment doesn't yield a similarly increasing number of production. In other terms, once the sum of input increases exponentially, the amount of output declines at a certain stage per each input variable.

For eg, a factory hires employees to produce its goods and, at some stage, works at an optimum level.

Therefore, it would be the right answer.