Q. If the marginal return increases at a decreasing rate, then the total return will be
Answer: decreases
Notes: This question talks about increasing marginal return at a decreasing rate, which is, in fact, a diminishing marginal return. In economics, the law of diminishing returns states: "If an increasing amount of one variable factor is applied to a fixed quantity of other factors per unit of time, the increase in total output will first increase but beyond some point, it will decrease. According to Richard A. Bilas's law of diminishing returns "If the investment of one resource in other resources is held constant, total output will increase but beyond some point, the resulting output growth will become smaller and smaller." So as the marginal return increases at a decreasing rate, the total return will eventually decrease.

This question is part of 40000+ General Studies MCQ Series Course on GKToday Android app. Question Number: 105 in 1. Important Concepts in Micro & Macroeconomics in above course in App.