When moving up along the production function,the marginal product of capital will
A) increase.
B) decrease.
C) first decrease and then increase.
D) first increase and then remain constant.
E) remain constant.

Question

Quizplus · Accepted Answer

As more and more units of capital are added to the production process, eventually the law of diminishing returns sets in and the marginal product of capital begins to decrease. This means that each additional unit of capital is adding less to output than the previous units.

When Moving Up Along the Production Function,the Marginal Product of Capital