Once a firm incurs diminishing marginal returns,total product will begin to decline as more of the variable input is employed.

Name: Once a firm incurs diminishing marginal returns,total product will begin to decline as more of the variable input is employed.
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Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when the marginal product of the variable input starts to decrease, but total product continues to increase, just at a decreasing rate. Total product only begins to decline when negative marginal returns occur.

Once a Firm Incurs Diminishing Marginal Returns,total Product Will Begin