Because of the "law of diminishing marginal returns" to
A factor, as more labor is employed, its marginal
Product:
A)rises.
B)falls.
C)stays constant.
D)rises disproportionally.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal returns, as more units of a factor of production (such as labor) are added to a fixed amount of other factors, the marginal product of that factor will eventually begin to decrease. Therefore, the correct choice is B, which states that the marginal product of labor will fall as more labor is employed.

Because of the "Law of Diminishing Marginal Returns" to