What does diminishing marginal product suggest
A)Additional units of output become less costly as more output is produced.
B)Marginal cost is upward sloping.
C)The firm is at full capacity.
D)Average product is rising.

Question

Quizplus · Accepted Answer

Diminishing marginal product suggests that as more units of a variable input are added, the marginal product of that input will eventually decrease. This means that the additional output produced by each additional unit of the variable input will be smaller, which leads to an increase in marginal cost.

What Does Diminishing Marginal Product Suggest