Diminishing marginal product is also known as

Question

Quizplus · Accepted Answer

Diminishing marginal product refers to a decrease in additional output as more units of inputs (such as labor) are added in the production process. This results in diminishing returns to the input, hence option A is correct. Option B is incorrect because net investment refers to the difference between gross investment and depreciation, which is not related to the concept of diminishing marginal product. Option C refers to the reduction in the value of an asset over time, which is also unrelated to diminishing marginal product. Option D is too broad and can refer to any type of investment, which is again not specific to the concept of diminishing marginal product. Option E refers to a situation where there is no net change in an economic variable over time, which has nothing to do with diminishing marginal product.

Diminishing Marginal Product Is Also Known as