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What happens to the marginal product of a factor as more units of that factor are employed?
  • a)
    It remains constant
  • b)
    It increases continuously
  • c)
    It first increases, then diminishes
  • d)
    It becomes negative
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What happens to the marginal product of a factor as more units of that...
The marginal product of a factor first increases and then diminishes as more units of that factor are employed, following the law of variable proportions.
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What happens to the marginal product of a factor as more units of that factor are employed?a)It remains constantb)It increases continuouslyc)It first increases, then diminishesd)It becomes negativeCorrect answer is option 'C'. Can you explain this answer?
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