Under diminishing marginal returns,as the amount of a variable input is reduced,the marginal product of a dollar's worth of the input will
A) exceed total product.
B) exceed average cost.
C) rise.
D) fall.
E) remain the same, but total input cost will rise.

Question

Quizplus · Accepted Answer

Under diminishing marginal returns, as the amount of a variable input is reduced, the marginal product of that input increases. This is because the remaining inputs are used more efficiently, leading to an increase in the output produced per unit of input.

Under Diminishing Marginal Returns,as the Amount of a Variable Input