The law of diminishing marginal product is a statement
A) that concerns changes in variable input and changes in output.
B) that concerns the long run.
C) that concerns changes in profits.
D) that relates to plant size.

Question

Quizplus · Accepted Answer

The law of diminishing marginal product states that as additional units of a variable input are added to a fixed input, eventually the marginal product (or additional output) yielded by each additional unit of the variable input will decrease. This law relates to changes in input and output, making choice A the correct answer. The other choices are not directly related to the law of diminishing marginal product.

The Law of Diminishing Marginal Product Is a Statement