As Successive Equal Increases in a Variable Factor of Production

question 158

Multiple Choice

As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will decline. This is known as the law of

• A) diminishing total product.
• B) diminishing average product.
• C) diminishing marginal product.
• D) decreasing product.

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