If each additional unit of capital increases a firm's yearly output by a smaller amount than the previous unit of capital,and other inputs are held constant,then the firm is experiencing

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In this scenario, the firm is experiencing diminishing marginal productivity of capital, which means that each additional unit of capital is contributing less to the firm's output than the previous unit. This is a common phenomenon in production where the law of diminishing returns sets in, and further increases in input lead to diminishing output gains.

If Each Additional Unit of Capital Increases a Firm's Yearly