When would one expect to observe diminishing marginal product of labour
A)when crowded factory space reduces the productivity of new workers
B)when workers are discouraged about the lack of help from other workers
C)when only new workers are trained in using the most productive capital
D)when union workers are told to reduce their work effort in preparation for a new round of collective bargaining talks

Question

Quizplus · Accepted Answer

Diminishing marginal product of labour occurs when adding additional units of labour leads to a less proportional increase in total output. In the case of crowded factory space, the addition of more workers may lead to a reduction in the productivity of new workers due to the limited space available. This is an example of when one would expect to observe diminishing marginal product of labour. The other options do not necessarily support the occurrence of diminishing marginal product of labour.

When Would One Expect to Observe Diminishing Marginal Product of Labour