According to modern thinking the law of diminishing returns applies to

(A) agriculture
(B) Industry
(C) mining
(D) all fields of production

Correct Answer : all fields of production
Question Asked : SSC Section Officer (Commercial Audit) Exam 2006
Explanation : The law of diminishing returns (also law of diminishing marginal returns or law of increasing relative cost) states that in all productive processes, adding more of one factor of production, while holding all others constant ("ceteris paribus"), will at some point yield lower per-unit returns. The law of diminishing returns does not imply that adding more of a factor will decrease the total production, a condition known as negative returns, though in fact this is common.
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Tags : Microeconomics
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