The Term Diminishing Returns Refers to A

question 140

Multiple Choice

The term diminishing returns refers to a:

• A)falling interest rate that can be expected as one's investment in a single asset increases.
• B)reduction in profits caused by increasing output beyond the optimal point.
• C)decrease in total output due to the firm hiring uneducated workers.
• D)decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.