After some point successive equal increases in a variable factor of production, when added to a fixed amount of inputs, will result in smaller increases in output. This is known as
A) the long run.
B) the law of diminishing marginal product.
C) marginal physical product.
D) short run average cost.

Question

Quizplus · Accepted Answer

The law of diminishing marginal product states that after some point, successive equal increases in a variable factor of production, when added to a fixed amount of inputs, will result in smaller increases in output. This happens because the fixed input becomes a limiting factor and cannot be increased further, hence the marginal product of the variable input decreases.

After Some Point Successive Equal Increases in a Variable Factor