As more labour is added to a fixed amount of capital,eventually the marginal product of labour decreases.

Question

Quizplus · Accepted Answer

This statement is known as the law of diminishing marginal returns, which states that as more and more units of one input (such as labour) are added to a fixed quantity of another input (such as capital), the marginal product of the variable input will eventually reach a point where it begins to diminish, ceteris paribus. This occurs because there are only so many ways that additional units of labour can efficiently combine with the fixed amount of capital.

As More Labour Is Added to a Fixed Amount of Capital,eventually