When the MPP of labor is zero,ceteris paribus,

Question

Quizplus · Accepted Answer

MPP (Marginal Physical Productivity) of labor is the increase in output resulting from the use of an additional unit of labor while holding all other inputs constant. When the MPP of labor is zero, it means that no further increases in output can be achieved by using additional units of labor regardless of the wage rate. Therefore, the best choice is B, which states that no further increases in output can be achieved by using additional units of labor.

When the MPP of Labor Is Zero,ceteris Paribus