What can account for the negative slope of the marginal revenue product curve?
A) Diminishing marginal utility
B) Diminishing marginal returns
C) Monopsony power
D) All workers eventually begin slacking.
E) none of the above

Question

Quizplus · Accepted Answer

The negative slope of the marginal revenue product curve is primarily due to the law of diminishing marginal returns. As a firm hires more and more workers, at some point each additional worker will add less and less to total output, decreasing the marginal revenue product of labor.

What Can Account for the Negative Slope of the Marginal