The law of diminishing marginal product

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The law of diminishing marginal product (or returns) states that:

as more and more of a variable input, such as labor, is employed to a short-run production process, beyond a point output will increase at an increasing rate

as more and more of a variable input, such as labor, is employed to a short-run production process, beyond a point output will increase at a decreasing rate

as more and more of a variable input, such as labor, is employed to a short-run production process, beyond a point output will decrease at a decreasing rate

as more and more of a variable input, such as labor, is employed to a short-run production process, beyond a point output will decrease at an increasing rate

Reference no: EM131094761

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