Diminishing marginal product
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Diminishing marginal product is a characteristic of a production function whereby the marginal product of a factor falls as the amount of the factor increases while all other factors are held constant.
Definition
According to Macroeconomics by Mankiw (7th edition),
- Diminishing marginal product. A characteristic of a production function whereby the marginal product of a factor falls as the amount of the factor increases while all other factors are held constant.
