when the law of diminishing returns takes effect afirms must

when the law of diminishing returns takes effect

a)firms must add increasiningly more input if they are to maintain the same exta mount of output.

b)firms must add decreasingly more input if they are to maintain the same extra amount of output

c) more input must be added in order to increase it output

c) a firm must always try to add the same amount of input to the production process

Solution

A. firms must add increasingly more input if they are to maintain the same exta amount of output.

The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant, will at some point yield lower incremental per-unit returns.So. a firm must add increased input in order to maintain same extra amount of output.