The law of diminishing marginal productivity implies that increasing only one input will:
A)not increase output.
B)lead to smaller and smaller increases in output.
C)lead to identical increases in output.
D)lead to larger and larger increases in output.

Question

Quizplus · Accepted Answer

The law of diminishing marginal productivity states that as more and more of one input (e.g., labor) is added to a fixed amount of other inputs (e.g., capital), the additional output (marginal productivity) generated from each additional unit of the variable input will eventually decrease.

The Law of Diminishing Marginal Productivity Implies That Increasing Only