As the quantity of labour increases, the marginal product of labour
A)is constant.
B)increases.
C)decreases.
D)may either increase or decrease.
E)gets more expensive.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as additional units of a variable input, such as labour, are added to fixed inputs (e.g. capital), the marginal product of that variable input will eventually decrease. This means that choice C is the correct answer.

As the Quantity of Labour Increases, the Marginal Product of Labour