X and Y are inputs used to produce good Z. If another unit of X increases but the units of Y are constant, then what is true according to the law of diminishing marginal returns?

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as additional units of one input (X) are added to a fixed amount of another input (Y), the marginal product of the input being increased (X) will eventually decrease.

X and Y Are Inputs Used to Produce Good Z