If capital is a variable input in a production process,the law of diminishing marginal returns implies that
A)total product is minimized.
B)capital's marginal product is positive and less than one.
C)total product is maximized.
D)marginal product of capital eventually decreases.
E)marginal product of capital is constant.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as a variable input (such as capital) is added to a fixed input (such as labor), eventually the marginal product of the variable input will decrease. This means that each additional unit of capital will produce less and less output, eventually leading to a decrease in total product. Therefore, the correct choice is D.

If Capital Is a Variable Input in a Production Process,the