For a short-run production function in which output is determined by the number of workers utilized (capital stock held constant),which of the following is FALSE?
A)In general,when there are few workers the marginal product of labor will be increasing.
B)When the marginal product of labor is negative,total product is falling.
C)To determine the marginal product of labor,the capital stock must be held constant.
D)When diminishing returns set in,adding one more worker decreases output.
E)none of the above

Question

Quizplus · Accepted Answer

In the context of diminishing returns, adding one more worker does not decrease output; instead, it means that each additional worker contributes less to output than the previous one. The output may still increase, but at a decreasing rate.

For a Short-Run Production Function in Which Output Is Determined