One of the primary causes of diminishing marginal product is
A) increasing marginal cost.
B) increasing price.
C) decreasing marginal cost.
D) diminishing total cost.
E) diminishing average fixed cost.

Question

Quizplus · Accepted Answer

Diminishing marginal product occurs when each additional unit of input adds less to total output than the previous unit. This is often caused by increasing marginal cost, which means that as more units of input are added, the cost of producing each additional unit of output increases. As a result, the additional output produced by each additional unit of input decreases, leading to diminishing marginal product.

One of the Primary Causes of Diminishing Marginal Product Is