The property of diminishing marginal product means that, after a point, when additional quantities of:
A)a factor are added, output diminishes.
B)both labor and capital are added, output diminishes.
C)both labor and capital are added, the marginal product of labor diminishes.
D)a factor are added when another factor remains fixed, the marginal product of that factor diminishes.

Question

Quizplus · Accepted Answer

The law of diminishing marginal product states that if one factor of production is increased while other factors are held constant, the additional output (marginal product) from the additional input will eventually decrease.

The Property of Diminishing Marginal Product Means That, After a Point