When does diminishing marginal product of labour occur?
A) when adding another unit of labour increases output by a larger margin than the last unit of labour employed
B) when the average product of labour begins to rise
C) when all inputs are varied simultaneously in the same proportion
D) when adding another unit of labour increases output, but not by as large a margin as the last unit of labour employed

Question

Quizplus · Accepted Answer

Diminishing marginal product of labour occurs when adding another unit of labour increases output, but not by as large a margin as the last unit of labour employed. This means that the additional input of labour is becoming less productive as more units of labour are added.

When Does Diminishing Marginal Product of Labour Occur