The law of diminishing marginal productivity implies that when one input is variable while others are fixed:
A)as input use increases, total output eventually falls.
B)the MP of the variable input will eventually decline.
C)the SRMC must fall initially.
D)the marginal product increases initially.

Question

Quizplus · Accepted Answer

The law of diminishing marginal productivity states that as the quantity of one input (the variable input) is increased while holding all other inputs constant (the fixed inputs), the marginal product of the variable input will eventually decrease. Therefore, choice B is the correct answer. Choices A, C, and D are all incorrect.

The Law of Diminishing Marginal Productivity Implies That When One