The law of diminishing marginal product (or returns) states that: O as more and

Question

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

Explanation / Answer

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Answer
Option second
The diminishing marginal product means increasing output at decreasing rate
suppose

TP(1)=8
TP(2)=12
TP(3)=15
MP(1)=8
MP(2)=12-8=4
MP(3)=15-12=3
the TP is increasing but decreasing rate and MP is decreasing it is called diminishing marginal product because the MP is decreasing from 8 to 4 and 4 to 3

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