The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of:

Question

The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of: ​

Quizplus · Accepted Answer

The situation described in the question is the law of diminishing returns, which is a fundamental concept in economics that states as more and more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease. This is because the fixed input becomes a bottleneck, limiting the output that can be produced.

The Situation in Which the Marginal Product of Labor Is