State the law of diminishing returns. How do diminishing returns differ from diseconomies of scale? Be sure to define diseconomies of scale in your answer

What will be an ideal response?

The law of diminishing returns states that at some point, adding more of a variable input to the same amount of a fixed input will eventually cause the marginal product of the variable input to decline. The law applies in the short run when there is at least one fixed factor of production. Diseconomies of scale applies in the long run when a firm is free to vary all of its inputs. Diseconomies of scale exist when a firm's long-run average cost rises as it increases output.