How does diminishing marginal product affect the shape of the production function?
A) The slope of the production function increases as the quantity of input increases.
B) The slope of the production function becomes more positive with diminishing marginal product.
C) The slope of the production function becomes horizontal once diminishing marginal product is achieved.
D) The slope of the production function decreases as the quantity of input increases.
E) The slope of the production function is not affected by diminishing marginal product.

Question

Quizplus · Accepted Answer

Diminishing marginal product means that as more units of input are added, the increase in output becomes smaller and smaller. This results in a decreasing slope of the production function, indicating that it takes more and more input to produce each additional unit of output. Therefore, the best choice is D.

How Does Diminishing Marginal Product Affect the Shape of the Production