Given a constant level of all other factors, if the marginal product of a factor is rising as more of it is used, then the firm is experiencing:
A) constant marginal returns.
B) increasing marginal returns.
C) diminishing marginal returns.
D) negative marginal returns.

Question

Quizplus · Accepted Answer

When the marginal product of a factor is rising as more of it is used, it indicates that the firm is experiencing increasing marginal returns. This means that each additional unit of the factor is adding more to the total output than the previous unit.

Given a Constant Level of All Other Factors, If the Marginal