The diminishing marginal product of labour refers to:
A)that as more and more workers are hired holding the level of capital fixed, the additional output will decrease.
B)a decline in our educational system.
C)workers getting lazy with age.
D)that as more and more workers are hired holding the level of capital fixed, the total output will decrease.

Question

Quizplus · Accepted Answer

The concept of diminishing marginal product of labour states that as more and more workers are hired holding the level of capital fixed, the additional output that each worker produces will eventually decrease. This is due to factors such as limited workspace, capital constraints, and less supervision, leading to a decrease in productivity. Therefore, choice A is the best answer. Choices B and C are unrelated, and choice D is incorrect because total output will initially increase, but at a diminishing rate.

The Diminishing Marginal Product of Labour Refers To