If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits
A)diminishing profitability.
B)increasing returns to scale.
C)increasing marginal product.
D)diminishing marginal product.

Question

Quizplus · Accepted Answer

If the production function shows declining marginal product of an input as the quantity of the input increases, then the production function is exhibiting diminishing marginal product, which means that adding more of that input will result in smaller and smaller increases in output.

If a Production Function Shows Declining Marginal Product of an Input