Diminishing marginal returns: The principle that as additional units of a variable input are added to a fixed input, marginal product eventually declines.
How to apply it: Explain why diminishing marginal returns cause the marginal cost curve to eventually rise.
Course: AP Microeconomics · Unit: Production, Cost, and the Perfect Competition Model
Practice questions about Diminishing marginal returns on AimFive — get rubric-based feedback showing exactly which points you earned.
AP and Advanced Placement are trademarks of College Board. AimFive is not affiliated with or endorsed by College Board.