Question

What isthe law of diminishing marginal product?

Answer 1

Law ofdiminishing Marginal Product

Accordingto this law, if the units of the variable factor keeps on increasingkeeping the level of the fixed factor constant, then initially themarginal product will rise but finally a point will be reached afterwhich the marginal product of the variable factor will start falling.After this point the marginal product of any additional variablefactor will be zero, and can even be negative.