When diminishing marginal returns set in, which of the following is TRUE?

Question

BlackTom AI · Accepted Answer

Marginal product starts to fall, because diminishing marginal returns mean each additional unit of a variable input adds less output than the previous unit while at least one input remains fixed.

1) Relevant concepts
- Total product (TP): total output produced.
- Marginal product (MP): change in TP from one more unit of the variable input, MP = ΔTP/ΔL.
- Average product (AP): TP divided by units of the variable input, AP = TP/L.
- Diminishing marginal returns: after some point, MP declines as additional units of the variable input are added to fixed inputs.

2) Step-by-step reasoning with a numerical illustration
Assume labor (L) is the variable input and output units (TP) are observed:
- L = 0, TP = 0
- L = 1, TP = 10  → MP1 = 10 − 0 = 10
- L = 2, TP = 18  → MP2 = 18 − 10 = 8
- L = 3, TP = 24  → MP3 = 24 − 18 = 6
- L = 4, TP = 28  → MP4 = 28 − 24 = 4

3) Intermediate steps shown
- MP1 = 10
- MP2 = 8 (10 → 8 is a decline)
- MP3 = 6 (8 → 6 is a decline)
- MP4 = 4 (6 → 4 is a decline)

4) Why the correct answer is correct
The example shows TP still increases with each additional worker (TP rising from 10 to 18 to 24 …), but MP (10, 8, 6, 4) falls after the first worker. This decline in MP is exactly the definition of diminishing marginal returns: additional input continues to raise total output but adds progressively less output. Therefore the true statement is that marginal product starts to fall.

5) Why the other options are incorrect
- "Total product starts to fall": False. TP falls only when MP becomes negative. Under diminishing returns MP is positive but declining, so TP still increases.
- "Average product is zero": False. AP = TP/L is not zero when TP > 0; diminishing returns do not imply AP = 0.
- "Marginal product is the highest": False. MP is highest before diminishing returns set in; once diminishing returns begin, MP declines from its peak.

6) Conclusion
The correct choice is "Marginal product starts to fall," which matches the provided answer.

When diminishing marginal returns set in, which of the following is TRUE? 单项选择题

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