The observation that after some point, successive equal size increases in a variable factor of production, such as labor, added to fixed factors of production, will result in smaller increases in output is the
A) law of diminishing marginal product.
B) streamlining production function.
C) consumer equilibrium.
D) theory of increasing marginal utility.

Question

Quizplus · Accepted Answer

This statement describes the concept of the law of diminishing marginal product, which states that as more units of a variable input are added to a fixed input, after a certain point the additional output produced by each additional unit of the variable input will decrease. This law is an important concept in economics and is used to explain why increasing the amount of a factor of production may eventually lead to decreasing marginal returns. The other answer choices are unrelated to this concept.

The Observation That After Some Point, Successive Equal Size Increases