Suppose adding another unit of labour leads to a smaller increase in output than previous units of labour provided.What property does this suggest
A)diminishing labour
B)negative marginal labour
C)diminishing marginal product
D)negative marginal product

Question

Quizplus · Accepted Answer

This scenario suggests that the marginal product of labour is decreasing, commonly known as diminishing marginal product. When adding each unit of labour, the additional output (marginal product) decreases, indicating that the productivity of labour is declining. This occurs when other factors of production remain constant.

Suppose Adding Another Unit of Labour Leads to a Smaller