Question

The law of diminishing returns is also called _____________.

• A. the law of diminishing physical productivity
• B. the law of proportionality
• C. the law of Non-proportional returns
• D. returns to scale

Answer 1

Answer: (A)

the law of diminishing physical productivity

When the variable factor is specifically labor, then the law of diminishing return is called the law of diminishing physical productivity as after a point, adding more labor is inefficient as productivity declines.