A company experiences diminishing marginal product if each time it hires an additional unit of an input,the extra output produced ________ by a ________ amount.
A) increases; smaller
B) increases; larger
C) increases; constant
D) decreases; smaller
E) decreases; larger

Question

Quizplus · Accepted Answer

In diminishing marginal product, each additional unit of input results in an increase in output, but the increase is smaller than the previous one.

A Company Experiences Diminishing Marginal Product If Each Time It