The principle that if the amount of labour and other inputs is held constant,then the greater the amount of capital in use,the less an additional unit of capital adds to production is called

Question

Quizplus · Accepted Answer

The principle described is that of diminishing returns to capital. As the amount of capital increases while holding other inputs constant, the marginal product of capital (i.e. the additional output resulting from an additional unit of capital) will eventually decrease, indicating diminishing returns.

The Principle That If the Amount of Labour and Other