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)We cannot tell from the information provided.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns suggests that as more units of a variable input (labor) are added to the production process while holding all other inputs constant, the marginal physical productivity of that input will eventually decrease. This occurs due to limited resources and the fact that each additional unit of labor will have a smaller impact on overall production as the other inputs remain constant. Therefore, the correct answer is B - decrease.

If More and More Labor Is Employed While Keeping All