"As additional units of a variable input are added to a fixed input, eventually the marginal physical product of the variable input will decline." This is a statement of the
A)law of supply.
B)average-marginal rule.
C)law of diminishing marginal utility.
D)law of diminishing marginal returns.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input (like labor) are added to a fixed input (like machinery or land), the additional output produced by each new unit of the variable input will eventually decrease. This principle is fundamental in economics, particularly in the analysis of production processes.

"As Additional Units of a Variable Input Are Added to a Fixed