Question

The law of diminishing returns states that as additional increments of resources ______________, the marginal benefit from those additional increments _______________. Select the correct answer below: are reduced, will decline eventually are added; will decline eventually are added; will increase eventually are reduced; will remain the same

Answer 1

Answer:

are added; will decline eventually

Explanation:

the point of diminishing returns sets in when the optimum capacity has been attained. at this level, increasing production by any extra unit would only bring about little or Fall in output.

if we hold the other factors of production constant/fixed while increasing one input, we will get toa stage where more additions of this input by one unit would only bring about decrease in output or cause output to fall.

therefore in summary this law States that as more increments are added, marginal benefit from increments declines eventually.