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

Question

Quizplus · Accepted Answer

Diminishing marginal product of labour occurs when each additional unit of labour input produces a successively smaller increase in output. This means that the marginal product of labour is decreasing.

Diminishing Marginal Product of Labour Is Said to Exist When