Causation

Cause of Diminishing Average Product with Fixed Inputs

The phenomenon of diminishing average product of labor in Angela's farming model is caused by the presence of a fixed input: the amount of land. As more hours of labor are applied to the same plot of land, the land becomes a limiting factor. Consequently, doubling the labor input will not result in a doubling of the output, leading to a decline in the average output per hour of work.

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Updated 2026-05-02

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