The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?

Question

Quizplus · Accepted Answer

The law of diminishing returns refers to the idea that as more units of a variable input are added to a fixed input, the additional output will eventually start to decrease. This means that the segment of the marginal product of labor curve where this occurs is the downward-sloping segment. Therefore, the law of diminishing returns applies only to this segment and not the entire curve or the upward-sloping segment. The point where labor input is zero is not relevant to the law of diminishing returns.

The Law of Diminishing Returns Applies to Which of the Following