The diminishing marginal product of labor exists when the last worker hired produces:
A) more output than the previous worker.
B) more value than the previous worker.
C) less value than the previous worker.
D) the same amount of output as the previous worker.
E) less output than the previous worker.

Question

Quizplus · Accepted Answer

The diminishing marginal product of labor occurs when each additional worker hired contributes less output than the previous one. This can be caused by a variety of factors, such as limited space or resources, inefficient division of labor, or decreasing returns to scale. Therefore, the correct answer is option E, which indicates that the last worker hired produces less output than the previous worker.

The Diminishing Marginal Product of Labor Exists When the Last