-Refer to the above table. At what quantity of labor does it become obvious that the law of diminishing marginal product has set in?

Question

Quizplus · Accepted Answer

The law of diminishing marginal product states that as more units of a variable input (in this case, labor) are added to a fixed input (in this case, capital), the marginal product of the variable input will eventually decrease. In the table, we can see that the marginal product of labor begins to decrease after worker number 3 is added.

-Refer to the Above Table