When the marginal product of an input declines as the quantity of that input increases, the production function exhibits
A)increasing marginal product.
B)diminishing marginal product.
C)diminishing total product.
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

Diminishing marginal product occurs when the marginal product of an input decreases as the quantity of that input increases. This implies that each additional unit of input produces less and less additional output. Diminishing total product occurs when the total product of a variable input increases at a decreasing rate as the quantity of the input increases.

When the Marginal Product of an Input Declines as the Quantity