Question

Diminishing return occurs : 

(a) when units of a variable input are added to a fixed input and total product falls 

(b) when units of a variable input are added to a fixed input and marginal product falls 

(c) when the size of the plant is increased in the end 

(d) when the quantity of the fixed input is increased and returns to the variable input falls

Answer 1

(b) when units of a variable input are added to a fixed input and marginal product falls