A diminishing marginal physical product occurs because of (1pts) decreasing output prices increasing input prices decreasing input prices limits on physical or biological response to increase input levels 10) Profit is maximized somewhere in the range where a marginal physical product is (1pts) decreasing but still positive increasing but positive constant negative Solution A diminishing marginal physical product occurs because of limits on physical or biological response to increase input levels Profit is maximized somewhere in the range where a marginal physical product is constant .