The Term Diminishing Returns Refers to A

Multiple Choice

The term diminishing returns refers to a:

A) falling interest rate that can be expected as one's investment in a single asset increases.
B) reduction in profits caused by increasing output beyond the optimal point.
C) decrease in total output due to the firm hiring uneducated workers.
D) decrease in the extra output due to the use of an additional unit of a variable input when all other inputs are held constant.