All factors of production usually experience:
A)diminishing marginal productivity.
B)decreasing average variable cost.
C)decreasing average fixed costs.
D)None of these is common to all factors of production.

Question

Quizplus · Accepted Answer

Diminishing marginal productivity is a common phenomenon experienced by all factors of production. As more units of a factor are used, the additional output resulting from each additional unit of the factor decreases, leading to a decline in the marginal productivity of the factor. This is based on the Law of Diminishing Marginal Returns.

All Factors of Production Usually Experience