Final answer:
The law of diminishing returns states that as more variable inputs are added to production, the productivity of these inputs decreases. This pattern of diminishing marginal productivity is common in production and is a result of fixed inputs. The statement is False.
Step-by-step explanation:
The law of diminishing returns states that as more variable inputs are added to production, the productivity of these inputs decreases, not increases. This means that at some point, adding more inputs will result in smaller increases in output, and eventually may even lead to a decrease in output.
For example, consider a farmer irrigating a crop. Initially, adding more water may lead to a significant increase in crop yield. However, as more and more water is added, the additional increase in yield becomes smaller, and at some point, the field may become flooded and the yield may decrease.
This pattern of diminishing marginal productivity is common in production and is a result of fixed inputs, such as land, where each additional unit of input contributes less to overall production.