In the specificfactors model, as more labor is added to
A sector, we will see:
A)the total product of labor decrease.
B)the marginal product of labor increase.
C)the average product of labor stay constant.
D)the marginal product of labor decrease.

Question

In the specific­factors model, as more labor is added to
A sector, we will see:
A)the total product of labor decrease.
B)the marginal product of labor increase.
C)the average product of labor stay constant.
D)the marginal product of labor decrease.

Quizplus · Accepted Answer

According to the specific-factors model, as more labor is added to a sector while keeping other factors constant, the marginal product of labor will eventually decrease due to diminishing returns. Adding more labor beyond the optimal level will lead to a decrease in productivity, which ultimately results in a decline in the marginal product of labor.

In the Specific­factors Model, as More Labor Is Added to

In the Specificfactors Model, as More Labor Is Added to