"As more and more units of a variable factor are employed with given units of a fixed factor, the marginal product will eventually."

increase

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decrease

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become negative

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become zero

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Solution

The correct option is B decrease
The Law of Diminishing Returns states that "as more and more units of a variable factor are employed with given units of a fixed factor, the marginal product will eventually decline."

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Similar questions

Q. TP must rise as more and more units of a variable factor are combined with the fixed factor.

Q. Given the behaviour of marginal product and total product as more and more units of only one input are employed while keeping other inputs as constant.

Q. Calculate average physical product and marginal physical product, given the following information about total physical product of a firm.

Employment of Variable Factor (Units)	Employment of Fixed Factor (Units)	Total Physical Product (Units)
$0$ $1$ $2$ $3$ $4$ $5$ $6$ $7$	$5$ $5$ $5$ $5$ $5$ $5$ $5$ $5$	$0$ $10$ $24$ $40$ $56$ $70$ $80$ $84$

Q. Find

T P

when 5 units of the variable factor are combined with 5 units of the fixed factor and

M P

remains constant at 10 units.

The diminishing marginal product of a variable factor implies that the amount of variable factor required per unit of output decreases. State true or false.

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"As more and more units of a variable factor are employed with given units of a fixed factor, the marginal product will eventually."

The correct option is B decreaseThe Law of Diminishing Returns states that "as more and more units of a variable factor are employed with given units of a fixed factor, the marginal product will eventually decline."

The correct option is B decrease
The Law of Diminishing Returns states that "as more and more units of a variable factor are employed with given units of a fixed factor, the marginal product will eventually decline."