Which of the following statements is true of the marginal product of an input?

Question

Quizplus · Accepted Answer

The marginal product of an input can be negative when adding additional units of the input decreases the total output of the firm. Both A and B are incorrect statements. The marginal product of an input is the additional output produced when one more unit of the input is added while all other inputs are held constant. The marginal product can increase initially but typically exhibits diminishing marginal returns as more and more of the input is used. Option D is also incorrect as the marginal product of the first unit of a variable input is typically positive.

Which of the Following Statements Is True of the Marginal