The principle of marginal productivity
A)is the same as the principle of marginal cost.
B)helps explain the demand for each input.
C)differs from industry to industry.
D)allows the world's food to be grown in a flower pot.

Question

Quizplus · Accepted Answer

The principle of marginal productivity helps explain the demand for each input. It is based on the concept that as additional units of an input are added, the increase in output or productivity will eventually diminish. This helps firms determine how much of each input to use based on the marginal productivity of each input.

The Principle of Marginal Productivity