Asked by Hayden Wilkes on Sep 24, 2024
Verified
The law of diminishing marginal productivity states that
A) As you expand output,your marginal productivity eventually increases
B) As you expand output,your marginal productivity eventually declines
C) As you expand output,the total product eventually increases
D) None of the above
Marginal Productivity
The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.
Diminishing
The process of lessening or decreasing in size, importance, or intensity.
Output
The quantity of goods or services produced by a business, individual, machine, or industry over a specified period.
- Comprehend the law of diminishing marginal productivity and its implications for output.
Verified Answer
EC
Erandy Camacho2 days ago
Final Answer :
B
Explanation :
The law of diminishing marginal productivity states that as you continue to add additional units of a variable input to a fixed input, holding all other inputs constant, eventually the marginal productivity of the variable input will begin to decline. Therefore, option B is the correct answer. Option A is incorrect because marginal productivity eventually declines, not increases. Option C is incorrect because total product may or may not increase as output expands and it is not necessarily related to the law of diminishing marginal productivity. Option D is incorrect because option B is the correct answer.
Learning Objectives
- Comprehend the law of diminishing marginal productivity and its implications for output.