Refer to Scenario 13-4. Farmer Brown's production function exhibits

A) increasing marginal product.
B) constant marginal product.
C) diminishing marginal product.
D) The production function is unrelated to the marginal product.

Diminishing Marginal Product

The principle that as additional units of a variable input are added to fixed inputs, the increase in output will eventually decrease.

Production Function

An equation expressing the relationship between inputs used in production and the output generated from those inputs.

Marginal Product

The increase in output that results from using one more unit of a particular input, assuming all other inputs remain constant.