As more labor is added to a fixed amount of capital, eventually the marginal product of labor decreases.False

Name: As more labor is added to a fixed amount of capital, eventually the marginal product of labor decreases.False
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Quizplus · Accepted Answer

This statement is true according to the law of diminishing returns, which states that as additional units of a variable input (in this case, labor) are added to a fixed input (capital), the marginal product of the variable input will eventually decrease.

As More Labor Is Added to a Fixed Amount of Capital