Asked by Khalil Vonner on Jul 14, 2024
Verified
Diminishing marginal productivity implies
A) decreasing marginal costs
B) increasing marginal costs
C) decreasing average costs
D) decreasing total costs
Marginal Productivity
Marginal productivity measures the change in output resulting from altering the level of a single input while holding other inputs constant.
Marginal Costs
The added financial burden of creating one more unit of a product or service.
- Gain insight into the theory of diminishing returns and how it influences the marginal and average product.
- Familiarize oneself with the diminishing marginal productivity rule and its impact on output quantities.
Verified Answer
HR
Hannah RobertsonJul 19, 2024
Final Answer :
B
Explanation :
Diminishing marginal productivity means that as more units of input are added to production, the additional output produced will eventually decrease. This leads to increasing marginal costs, as more input is needed to produce each additional unit of output.
Learning Objectives
- Gain insight into the theory of diminishing returns and how it influences the marginal and average product.
- Familiarize oneself with the diminishing marginal productivity rule and its impact on output quantities.