As the quantity of capital increases,the marginal product of capital
A) does not change.
B) increases.
C) decreases.
D) may either increase or decrease.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns holds that as more and more units of a variable input, such as capital, are added to a fixed input, such as land or labor, the marginal product of that variable input will eventually decrease. Therefore, as the quantity of capital increases, the marginal product of capital will decrease.

As the Quantity of Capital Increases,the Marginal Product of Capital