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Question 7 1 pts The phenomenon of diminishing returns happens: in both the long and short runs only in the market period onl
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The answer is option d- only in the short run

Decreasing returns occur in the short run when one factor (e.g. capital) is fixed when the variable factor of production (e.g. labour) is increased, a point occurs when it becomes less productive and thus a decreasing marginal and then average product eventually occurs.
This is because, when capital is set, additional workers will eventually find themselves in the way of each other as they try to increase production. Think of the impact of extra workers in a small café, for example. If more employees are working, production can increase, but slower and slower.
The law applies only in the short term because all variables are variable in the long run.

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