As the marginal product of labor _____, it takes a _____ increase in the quantity of labor to produce another unit of output, which makes marginal cost increase.

Question

Quizplus · Accepted Answer

As the marginal product of labor decreases, it means each additional worker is adding less output than the previous one. Therefore, it takes a greater increase in the quantity of labor to produce another unit of output, leading to an increase in marginal cost.

As the Marginal Product of Labor _____, It Takes a _____

As the Marginal Product of Labor _, It Takes a _