ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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as more of a variable input is used, while other inputs and technology are fixed, the average product of the variable input will increase.
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as more of a variable input is used, while other inputs and technology are fixed, the marginal product of the variable input will eventually decrease.
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as more of a variable input is used, while other inputs and technology are fixed, the average product of the fixed input will eventually decrease.
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as more of a fixed input is used, while other inputs and technology are variable, the marginal product of the variable input will eventually increase.
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Detailed explanation-1: -Key Takeaways The law of diminishing marginal returns states that adding an additional factor of production results in smaller increases in output. After some optimal level of capacity utilization, the addition of any larger amounts of a factor of production will inevitably yield decreased per-unit incremental returns.
Detailed explanation-2: –The law of diminishing marginal returns states that as ever larger amounts of a variable input are combined with fixed inputs, eventually the marginal physical product of the variable input will decline and marginal cost rises.
Detailed explanation-3: -As more units of the variable factor are added, the overall production will continue to increase. However, during this stage, the total product increases at a continuously decreasing rate. This process culminates with the product reaching its maximum value, meaning that the marginal product becomes zero.
Detailed explanation-4: -The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines.