Question at position 8 The law of diminishing marginal productivity states thatA) As you expand output, your marginal productivity eventually increasesB) As you expand output, your marginal productivity eventually declinesC) As you expand output, the total product eventually increasesD) None of the aboveClear my selection

Question

Question at position 8 The law of diminishing marginal productivity states thatA) As you expand output, your marginal productivity eventually increasesB) As you expand output, your marginal productivity eventually declinesC) As you expand output, the total product eventually increasesD) None of the aboveClear my selection

BlackTom AI · Accepted Answer

Let's unpack the question by restating what the law of diminishing marginal productivity means in simple terms.
Option A says that marginal productivity increases as output expands. This runs counter to the core idea of diminishing returns, which states that adding more of a variable input (like labor) to a fixed input (like capital) eventually yields smaller increments in output. In practice, this option mismatches the established concept.
Option B asserts that as you expand output, marginal productivity eventually declines. This aligns with the law of diminishing marginal productivity: after a certain point, each additional unit of input contributes less to total output than the previous one, due to fixed resources and other limiting factors. The intuition is that crowded resources lead to inefficiencies that erode extra gains from adding inputs.
Option C claims that total product eventually increases as you expand output. While total product may rise initially, the law states that the slope of the total product curve (i.e., marginal product) falls with continued input, eventually becoming negative or very small. Therefore this option ignores the crucial diminishing marginal aspect and is not accurate for the law in question.
Option D suggests none of the above. Given that Option B correctly captures the essence of diminishing marginal productivity, this option would be inappropriate. However, remember the key is recognizing the standard result that marginal output declines with continued input use when some resources are fixed.
To reinforce the central idea, think of a production setup where capital is fixed; adding more workers boosts output at first, but after some point, crowding and coordination problems mean each extra worker adds less and less, showing diminishing marginal productivity. This sequencing explains why the other options fail to describe the law accurately.
In summary, the statement that best matches the law of diminishing marginal productivity is the one describing a decline in marginal productivity as output expands, which corresponds to Option B. The incorrect choices either invert the relationship, misstate the effect on total output, or claim no such pattern exists, which contradicts the established principle.

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