alleryStart learning →Diminishing marginal returns is described as the general concept behind:
AOnly the demand curve
BOnly accounting profit
COnly the fixed costs
DMore than one pattern
Answer & Solution
Correct answer: D. More than one pattern
1. The idea recurs in several places in production theory.
2. Both concepts are examples of the more general concept of diminishing marginal returns.
3. Falling extra output per worker and rising marginal cost are two faces of the same thing.
4. That is why the concept is introduced as general rather than tied to one curve.
5. Fixed costs, by contrast, do not change with output at all.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 7 'Production, Costs and Industry Structure', sections 7.1-7.4_
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