The idea of diminishing returns to an input in production suggests that,if a local college adds more custodians,the marginal product of labor for the custodial staff will:
A)increase at an increasing rate.
B)increase at a decreasing rate.
C)decrease.
D)not change.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that adding more of one input, while holding others constant, will eventually lead to a decrease in the marginal product of that input. Thus, adding more custodians will eventually decrease the marginal product of labor for the custodial staff.

The Idea of Diminishing Returns to an Input in Production