Does the law of diminishing retums apply to capital as well as labour? Explain why or why not. Diminishing retums to capital O A. do not; labour each additional unit of capital will result in larger OB. do; occur as the quantity of capital increases because for a given quantity of capital each additional unit of labour will result in smaller O C. do not; labour each additional unit of capital will result in smaller OD. do; labour each additional unit of capital will result in smaller incremental amounts of output