Diminishing marginal product of capital (MPK) means:

Name: Diminishing marginal product of capital (MPK) means:
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Diminishing MPK means that as more capital is added, the increase in output will eventually become smaller and smaller. This is a typical pattern in production processes where other variables (such as labor) remain constant, and is due to the fact that adding more capital leads to decreasing marginal returns. Eventually, adding more capital will actually lead to a reduction in output.

Diminishing Marginal Product of Capital (MPK) Means