Question

occurs when each addition of an input results in declining quantity of the output
diminishing marginal costs
diminishing marginal returns
diminishing marginal utility
diminishing marginal profits

Explanation:

The definition describes a production concept where adding more of one input (while others are fixed) leads to smaller increases in output, which matches the economic principle of diminishing marginal returns. The other options refer to cost, consumer utility, and profit changes, not input-output production relationships.

Answer:

B. Diminishing Marginal Returns