Question

The principle that if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else constant, is known as:

A. Law of diminishing returns
B. Law of constant returns
C. Law of increasing returns
D. Law of variable returns

Answer 1

The principle that if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else constant, is known as the Law of diminishing returns.

Step-by-step explanation:

The principle that if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else constant, is known as the Law of diminishing returns. This law states that as increments of additional resources are devoted to producing something, the marginal increase in output will become increasingly smaller.