The marginal product of labor
A)is measured by the slope of the production function relating capital to employment.
B)is larger when the labor supply is relatively larger.
C)is smaller when the labor supply is relatively smaller.
D)decreases as the number of workers already employed increases.

Question

Quizplus · Accepted Answer

The marginal product of labor decreases as the number of workers already employed increases, which is known as the law of diminishing marginal returns. This means that after a certain point, adding more workers to the production process will result in a smaller increase in output. The other choices are not necessarily true - the slope of the production function relates capital to employment, and the size of the labor supply does not necessarily affect the marginal product of labor.

The Marginal Product of Labor