When adding another unit of labor leads to an increase in output that is smaller than the increases in output that resulted from adding previous units of labor,we have the property of

Question

Quizplus · Accepted Answer

When adding additional units of labor results in a smaller increase in output than previous units of labor, we have a situation of diminishing marginal product. This means that the additional unit of labor is not contributing as much to the production process as previous units, resulting in a decrease in the marginal product of labor. So, the correct answer is C- diminishing marginal product.

When Adding Another Unit of Labor Leads to an Increase