If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits
A) diminishing profitability.
B) increasing returns to scale.
C) increasing marginal product.
D) decreasing marginal product.

Question

Quizplus · Accepted Answer

If the production function shows declining marginal product of an input as the quantity of input increases, it means that the additional output produced by each additional unit of the input is decreasing. This is known as decreasing marginal product, and is often seen when too much of a particular input is added to the production process.

If a Production Function Shows Declining Marginal Product of an Input