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Why is the law of diminishing returns a short run phenome...

Why is the law of diminishing returns a short run phenomenon?

A.

All inputs are fixed

B.

All inputs are variable

C.

Some outputs are variable

D.

Some inputs are variable

Correct answer is A

The law of diminishing returns states that as an increasing amount of a variable factor is added to a fixed factor, the marginal product of the variable factor may at first rise but must eventually fall.

The law of diminishing returns applies in the short run because only then is some factor fixed.