Diminishing marginal returns implies that
A) marginal product is decreasing.
B) marginal product is increasing.
C) marginal product is constant.
D) marginal product may be increasing or decreasing.

Question

Quizplus · Accepted Answer

Diminishing marginal returns occurs when adding additional units of a variable factor causes the marginal product of that factor to decrease. In other words, the increase in output caused by adding each additional unit of the variable factor becomes smaller and smaller.

Diminishing Marginal Returns Implies That