If a variable input is added to some fixed input, beyond some point the resulting extra output will decline. This statement describes

A) economies and diseconomies of scale.
B) X-inefficiency.
C) the law of diminishing returns.
D) the law of diminishing marginal utility.

Diminishing Returns

A principle stating that as additional units of a variable resource are added to a fixed resource, the marginal product of the variable resource will eventually decrease.

Fixed Input

A production factor that remains unchanged regardless of the level of output in the short run.