As additional units of an input are employed,the marginal product of the input is
A) always increasing.
B) always decreasing.
C) constant.
D) eventually increasing.
E) eventually decreasing.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of an input are added, the marginal product of that input will eventually decrease. This is because the fixed input (such as land or equipment) becomes limiting and cannot be increased proportionately to the additional variable input (such as labor). Therefore, the best choice is E, as the marginal product will eventually decrease.

As Additional Units of an Input Are Employed,the Marginal Product