Table 18-1

-Refer to Table 18-1.What is the name of the property exemplified by the fact that the marginal product changes as the number of workers increases

Question

Table 18-1
 
-Refer to Table 18-1.What is the name of the property exemplified by the fact that the marginal product changes as the number of workers increases

Quizplus · Accepted Answer

The property exemplified by the fact that the marginal product changes as the number of workers increases is known as diminishing marginal product. This means that as more and more units of a variable input (such as labor) are added to a fixed amount of other inputs (such as capital), the marginal product of the variable input will eventually decline. This is due to factors such as diminishing returns and the limited capacity of the fixed inputs to support additional units of the variable input.

Table 18-1 -Refer to Table 18-1.What Is the Name of the Property