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

Question

Quizplus · Accepted Answer

The marginal product of labour decreases as the number of workers already employed increases, due to the diminishing returns to labour. Option A is incorrect as the production function measures the total output that can be produced by different combinations of labour and capital, and not the marginal product of labour. Options B and C are also incorrect as the size of labour supply does not determine the marginal product of labour.

The Marginal Product of Labour