Question on: JAMB Economics - 1994

Diminishing returns set in when the marginal product of the variable input begins to decline. In the context of a production function, this corresponds to the point where the slope of the curve starts to flatten. * **Point I:** This is at the beginning of production, where output is increasing at an increasing rate. * **Point J:** Output is increasing at a decreasing rate. * **Point K:** This is the inflection point, where the rate of increase begins to slow down (diminishing returns begin). * **Point L:** This is beyond the point of diminishing returns.