Diminishing marginal product means that ________.
A)when adding extra units of a single input,output increases become smaller
B)when adding extra units of a single input,output increases become larger
C)when adding extra units of a single input,output declines
D)the amount of output increases when we add more inputs
E)none of the above

Question

Quizplus · Accepted Answer

Diminishing marginal product refers to the principle that as more units of a single input (e.g., labor) are added to a fixed amount of other inputs (e.g., capital), the additional output (product) generated by each new unit of input eventually decreases. This means that while output may still increase with the addition of each unit of input, the size of the increase becomes smaller.

Diminishing Marginal Product Means That ________