The law of diminishing marginal returns tells us that,generally,the more capital the firm uses,the

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The law of diminishing marginal returns states that as a firm adds more units of a variable input (such as capital) to a fixed amount of other inputs (such as labor), the marginal product of the variable input will eventually decrease. This means that the marginal revenue product (MRP) of the variable input (in this case, capital) will also decrease. Therefore, the more capital the firm uses, the lower the MRP of the firm's capital will be.

The Law of Diminishing Marginal Returns Tells Us That,generally,the More