When ________ units of capital are purchased, the marginal product will ________.
A) more; increase
B) more; not change
C) more; decrease
D) fewer; decrease
E) fewer; not change

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input (such as capital) are added to a fixed input (such as land or labor), the marginal product (the additional output produced by each additional unit of the variable input) will eventually decrease. Therefore, when more units of capital are purchased, the marginal product will decrease.

When ________ Units of Capital Are Purchased, the Marginal Product