Question

The "law of diminishing returns" applies to _________________.

• A. short run, but not long run
• B. long run, but not short run
• C. both short run and long run
• D. neither short run nor long run

Answer 1

The correct option is A short run, but not long run

The "Law of diminishing returns" is a part of law of variable proportion which applies to the short run, but not the long run.