In the short run, behavior of production is explained by Select one: a. The law of diminishing marginal returns b. The law of returns to scale c. Economies and diseconomies of scale d. The law of demand and supply

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Q: Why Law of Diminishing Returns is a short run law?

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Q: Explain the idea behind diminishing marginal returns and give a real-life example.

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.