As more workers are hired to harvest grapes in a vineyard, the fields become overcrowded. As a result, the marginal product of labour is likely to diminish.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input, such as labor, are added to a fixed input, such as land, the marginal product of the variable input will eventually diminish. This means that as more workers are hired in a vineyard, the marginal product of labor is likely to diminish, causing overcrowding in the fields.

As More Workers Are Hired to Harvest Grapes in a Vineyard