Diminishing marginal product is closely related to:

Question

Quizplus · Accepted Answer

Diminishing marginal product refers to the decrease in additional output produced as more of a variable input, such as labor, is added to a fixed amount of another input, such as capital. This decrease in output leads to an increase in marginal cost, which means that the cost of producing each additional unit of output is rising. Therefore, option A (increasing marginal cost) is closely related to diminishing marginal product. Option B (diminishing marginal cost) is not closely related because diminishing marginal cost refers to the decrease in the cost of producing each additional unit of output as more is produced. Option C (diminishing total cost) is also not closely related because total cost is the sum of all the costs, both fixed and variable, of producing a given level of output, which is not directly affected by diminishing marginal product.

Diminishing Marginal Product Is Closely Related To