According to diminishing marginal product,if all the inputs to a firm are increased in equal proportions,
A) output will increase more than in proportion to the increase in the inputs.
B) output will increase less than in proportion to the increase in the inputs.
C) output will increase exactly in proportion to the increase in the inputs.
D) The law of diminishing returns says nothing about what will happen to output when all inputs are increased in equal proportions.

Question

Quizplus · Accepted Answer

The law of diminishing marginal product applies when one input is increased while others are held constant. It does not address the scenario where all inputs are increased proportionally.

According to Diminishing Marginal Product,if All the Inputs to a Firm