Question

In agricultural production economics, a production function curve that shows output initially increasing at an increasing rate, then at a decreasing rate, and eventually declining with continued addition of a variable input while other inputs are held constant, illustrates which classical economic principle?

Q: Answer-In agricultural production economics, a production function curve that shows output initially increa...

Explanation The law of diminishing marginal returns, illustrated by a typical production function curve, states that as successive units of a variable input such as fertiliser are added to a fixed input such as land, total output initially increases at an increasing rate, then at a decreasing rate, and may eventually decline, reflecting the diminishing additional marginal output obtained from each successive unit of input.