Question

__________ is the idea that a specific type of effort will create increasingly effective results up until a certain point, when it will then cause smaller and smaller increases in results.

A. The division of labor

B. Outsourcing

C. The law of diminishing returns

D. Globalization

Answer 1

C. The law of diminishing returns

Step-by-step explanation:

The law of diminishing marginal returns argues that the continuous addition of one input of production while holding the other constant will lead to increased productivity up to the optimal level. Beyond the optimal level, employing extra input will result in declining productivity. If more of the input while holding the other constant, productivity will turn negative.