When the marginal product of an input falls as the quantity of the input rises,this is known as
A) diminishing marginal product.
B) diminishing output.
C) diminishing production.
D) decreasing returns to scale.
E) inverse marginal product.

Question

Quizplus · Accepted Answer

Diminishing marginal product occurs when adding more units of a particular input to a fixed amount of other inputs will eventually decrease the marginal product of that input, resulting in a reduction in total output. This is a common phenomenon in production and is the result of the decreasing efficiency of input usage.

When the Marginal Product of an Input Falls as the Quantity