If more and more labor is employed while keeping all other inputs constant,the marginal physical productivity of labor will eventually:
A)increase.
B)decrease.
C)remain constant.
D)cannot tell from the information provided.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more and more of a variable input (such as labor) is added while keeping other inputs constant, the marginal product of that input will eventually begin to decline. Therefore, the marginal physical productivity of labor will decrease.

If More and More Labor Is Employed While Keeping All