Over the range of diminishing marginal product,if the variable input to a firm is increased:
A) output will increase more than in proportion to the increase in the input.
B) output will increase less than in proportion to the increase in the input.
C) output will increase exactly in proportion to the increase in the input.
D) output will increase more than in proportion to the increase in the inputs at first, but it will eventually increase less than in proportion to the increase in the input.

Question

Quizplus · Accepted Answer

Over the range of diminishing marginal product, the additional output produced by each additional unit of input decreases. Therefore, if the variable input to a firm is increased, output will increase but by a smaller proportion than the increase in the input. This is because each additional unit of input adds less and less to overall output. Thus, output will increase less than in proportion to the increase in the input.

Over the Range of Diminishing Marginal Product,if the Variable Input