As firms use more and more of an input,________.
A)the marginal product of other inputs tends to increase
B)the marginal product of the input declines
C)the price of the input may increase
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The statement encompasses the law of diminishing marginal returns (B), potential impacts on the marginal product of other inputs due to changes in input combinations (A), and possible market-driven price adjustments due to increased demand for the input (C).

As Firms Use More and More of an Input,________