What does the law of diminishing marginal product state about output as more variable inputs are employed?

The law of diminishing marginal product describes a crucial concept in production economics, particularly concerning the relationship between variable inputs and output levels. According to this law, as more units of a variable input (like labor) are added to a fixed input (like land or machinery), the additional output produced from each additional unit of input will eventually start to decrease.

Initially, when a producer adds workers to a certain amount of machinery, they might benefit from increased collaboration and efficiency, leading to increased output at an increasing rate. However, as more and more workers are added, each new worker contributes less to overall production due to limited fixed resources. This is because there are only so many tools and equipment to go around, and at some point, crowding or over-utilization of resources starts to hinder productivity.

Thus, after reaching that optimal point, output continues to increase, but at a decreasing rate. This diminishing return is not a sign that production has become unviable; it merely indicates that the efficiency of adding additional labor is decreasing. Therefore, the correct answer reflects the behavior of output in relation to the additional units of variable inputs after a specific threshold has been exceeded.