In general, as the amount of labor input decreases, the amount of output
A)increases.
B)decreases.
C)remains constant.
D)decreases only if the capital stock also decreases.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal returns, as the amount of labor input decreases while other inputs (such as capital) remain constant, the marginal product of labor will eventually decrease. This means that the amount of output will decrease as well.

In General, as the Amount of Labor Input Decreases, the Amount