As the quantity of land used increases,its value of marginal product
A) decreases and then eventually increases.
B) increases and then eventually decreases.
C) remains constant.
D) might increase, decrease, or remain constant depending if the rent for the land rises, falls, or does not change.
E) The premise of the question is wrong because land does not have a value of marginal product.

Question

Quizplus · Accepted Answer

The value of marginal product of land initially increases as more land is used until a point where the addition of extra land leads to diminishing returns. After this point, the value of marginal product of land will eventually decrease as the additional inputs used on the land become relatively scarce leading to decreasing productivity.

As the Quantity of Land Used Increases,its Value of Marginal