Diminishing marginal productivity implies decreasing total product.

Diminishing Marginal

refers to the principle in economics where each additional unit of input results in a smaller increase in output, commonly applied in the context of production and utility.

Marginal Productivity

The additional output produced as a result of employing one more unit of a factor of production.

Total Product

The total quantity of output produced by a firm with a given amount of inputs during a specific period.

Understand the difference between diminishing marginal productivity and its effect on total product versus total cost.

Verified Answer

Daniel MoranJul 29, 2024

Final Answer :

False

Explanation :

Diminishing marginal productivity implies that each additional unit of input produces less additional output, but total product continues to increase, just at a decreasing rate.

Learning Objectives

Understand the difference between diminishing marginal productivity and its effect on total product versus total cost.

Diminishing marginal productivity implies decreasing total product.

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Learning Objectives

Learning Objectives

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