A variable input in a fixed- proportions production function exhibits:
A)diminishing marginal productivity everywhere.
B)positive, constant, or zero marginal productivity.
C)diminishing and then constant marginal productivity.
D)constant and then falling marginal productivity.

Question

Quizplus · Accepted Answer

In a fixed-proportions production function, the output can only increase if all inputs increase by the same proportional amount. Therefore, the marginal productivity of a variable input remains either positive, constant, or zero, as the input level increases. There is no scope for diminishing or increasing marginal productivity in this type of production function. Hence, option B is the correct choice.

A Variable Input in a Fixed- Proportions Production Function Exhibits