Question

As more labour is added to a fixed amount of input, the rate at which output goes up begins to decrease. This is called ____________.

• A. diminishing marginal utility
• B. ddiminishing marginal product
• C. diminishing marginal costs
• D. diminishing marginal profit

Answer 1

Answer: (B)

ddiminishing marginal product

Marginal product is the defined as the change in total product resulting from one additional unit of a variable factor. When the output increases at a decreasing rate it is known as diminishing marginal product because during this phase the marginal product is falling.