All factors of production eventually experience:
A)decreasing average variable cost.
B)diminishing marginal productivity.
C)decreasing average fixed costs.
D)diminishing total productivity.

Question

Quizplus · Accepted Answer

Diminishing marginal productivity occurs when adding an additional factor of production results in a smaller increase in output. This principle is a fundamental concept in economics, reflecting the reality that, after a certain point, each new input contributes less to production than the previous one.

All Factors of Production Eventually Experience