The principle that states the marginal product of an input decreases as the quantity of the input increases is called:
A)diminishing marginal product.
B)increasing rate of return.
C)production function.
D)total product optimization.

Question

Quizplus · Accepted Answer

The principle of diminishing marginal product states that as more of an input is used in production, holding all other inputs constant, the additional output produced from each additional unit of the input will eventually decrease. This is a fundamental concept in economics, particularly in the analysis of production and cost.

The Principle That States the Marginal Product of an Input