Diminishing marginal product of labour is said to exist when there is
A)an increase in the division and specialization of labour.
B)a reduction in the level of labour input that causes output to increase.
C)a successively smaller increase in output with each successive unit increase in labour input.
D)an increase in the amount of capital available for each unit of labour.
E)technological advancement.

Question

Quizplus · Accepted Answer

Diminishing marginal product of labour occurs when there is a successively smaller increase in output with each successive unit increase in labour input. This means that additional units of labour do not increase output at the same rate as previous units of labour. This can be due to factors such as overcrowding, fatigue, or inadequate resources.

Diminishing Marginal Product of Labour Is Said to Exist When