Question

When more and more units of a variable factor are combined with constant amount of a fixed factor, such that the variable factor becomes abundant compared to the fixed factor, the output will eventually:

Answer 1

It will increase in a diminishing rate.

Raising variable components that correspond to fixed factors boosts output level in the early phase of production because the marginal product is greater. The output will grow at a consistent pace as variable factors continue to rise relative to fixed factors.

If it continues to rise, output will begin to shrink as the marginal product of each additional variable component declines.  As the number of inputs used increases, so does output, which subsequently begins to rise slowly and at a decreasing pace.

Therefore, the answer is increase at a diminishing rate.

To know more about diminishing rate of return click here:

brainly.com/question/22778256

#SPJ4