According to the principle of diminishing marginal physical productivity, in the short run
A)as output increases, costs per unit of output must eventually decline
B)marginal product will decrease continually as output is expanded
C)as output is increased, the quantity of inputs needed to produce additional units of output will increase, causing costs per unit of output to increase
D)total output will become negative once marginal product begins to decline

Question

Quizplus · Accepted Answer

The principle of diminishing marginal physical productivity states that as more units of a variable input (like labor) are added to fixed inputs (like capital), the additional output produced by each new unit of input will eventually decrease. This implies that to produce additional units of output, more input will be required, leading to an increase in the cost per unit of output as production expands.

According to the Principle of Diminishing Marginal Physical Productivity, in the Short