When a firm's marginal productivity declines as output increases,then the firm is experiencing
A)Diminishing returns to scale
B)Constant returns to scale
C)Increasing returns to scale
D)Increasing marginal product

Question

When a firm's marginal productivity declines as output increases,then the firm is experiencing​
A)​Diminishing returns to scale
B)Constant returns to scale
C)Increasing returns to scale
D)​Increasing marginal product

Quizplus · Accepted Answer

When marginal productivity declines as output increases, it means that each additional unit of input is becoming less and less productive, resulting in a decrease in the marginal product of that input. This phenomenon is known as diminishing returns to scale. As a result, the firm's total production will eventually slow down and may even decline.

When a Firm's Marginal Productivity Declines as Output Increases,then the Firm