The law stating that if the quantity of a variable factor of production is increased, with the quantities of all other factors given, the marginal product of the variable factor will eventually decline is the law of:
A) demand.
B) supply.
C) decreasing average production.
D) diminishing marginal returns.

Question

Quizplus · Accepted Answer

The law described is the law of diminishing marginal returns, which states that as a variable input is added to a fixed input, eventually the marginal output will decline. This is due to the decreasing productivity of adding additional units of the variable input.

The Law Stating That If the Quantity of a Variable