The production function illustrates

Question

Quizplus · Accepted Answer

The production function describes the relationship between the inputs (such as labor and capital) and the output that can be produced using those inputs. The Law of Diminishing Marginal Returns states that as additional units of one input are added to a fixed quantity of other inputs, the marginal product of the variable input will eventually decline, assuming all other variables remain constant. Therefore, choice D is the best answer.

The Production Function Illustrates