If increasing quantities of a variable factor are applied to a given quantity of fixed factors,then the law of diminishing returns tells us that
A)the marginal product will eventually decrease with constant average product.
B)the marginal product and the average product of the variable factor will eventually decrease.
C)the average product will eventually decrease with constant marginal product.
D)the average product will eventually decrease,but only if total product is held constant.
E)total product will eventually begin to fall.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as more and more units of a variable input (factor) are added to fixed inputs, the marginal product of the variable input will eventually decrease. This means that each additional unit of the variable input will result in a smaller increase in output. As a result, the average product of the variable input will also eventually decrease since the fixed input cannot keep up with the increased units of the variable input. Therefore, the correct choice is B.

If Increasing Quantities of a Variable Factor Are Applied to a Given