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It is prudent to determine the size of the output when the industry is operating in the stage of
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- increasing returns
- constant returns
- diminishing returns
- negative returns
- increasing returns
Correct Option: C
In economics, diminishing returns (also called diminishing marginal returns) is the decrease in the marginal (per-unit) output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant. This law plays a central role in production theory.
