Asked by Caleigh Noelle on May 22, 2024
Verified
Diminishing marginal product affects the shape of the production function in what way?
A) The slope of the production function decreases as the quantity of input increases.
B) The production function becomes steeper as the quantity of input increases.
C) The production function slopes downward.
D) The production function is horizontal beyond a certain quantity of input.
Diminishing Marginal Product
The principle that as more of a variable input is added to a fixed input, the additional output produced from each new unit of input will eventually decrease.
Production Function
A production function describes the relationship between inputs used in production and the output generated from those inputs.
- Clarify the concept known as the marginal product of labor.
Verified Answer
EF
Erick FigueroaMay 28, 2024
Final Answer :
A
Explanation :
Diminishing marginal product implies that as more units of an input are added to production, the additional output produced from each new unit of input decreases. This results in the slope of the production function decreasing as the quantity of input increases, reflecting a flattening curve rather than a steepening or linear one.
Learning Objectives
- Clarify the concept known as the marginal product of labor.