The output voltage of an amplifier decreases outside its bandwidth due to the effects of capacitance and impedance. As frequency increases, the impedance of capacitive components drops, limiting the amplifier's ability to respond effectively to high-frequency signals. This results in a reduced gain on the frequency response plot as frequency increases. Inductance also plays a significant role in certain amplifiers, affecting overall performance. Understanding the relationship between frequency and impedance is crucial for grasping why voltage output diminishes at extreme frequencies.