Home › MCQs › Agriculture Economics › Question #11861
Back to Questions
Agriculture Economics QUESTION #11861
Question 1
The Law of Diminishing Marginal Returns states that as successive units of a variable input are added to a fixed input, eventually:
  • Total product declines immediately
  • Marginal physical product eventually declines✔️
  • Average product rises indefinitely
  • Fixed costs increase
Correct Answer Explanation
The law holds that beyond some point, each additional unit of variable input adds a smaller increment to output, i.e., $MPP$ falls.