-In the above figure,Graph D with Capital on the vertical axis and labor on the horizontal axis implies that
A) the marginal product of labor is increasing as more labor is employed.
B) the marginal product of labor is decreasing as more labor is employed.
C) the capital and labor are perfect substitutes.
D) capital and labor have to be employed in fixed proportions.

Question

-In the above figure,Graph D with Capital on the vertical axis and labor on the horizontal axis implies that
A) the marginal product of labor is increasing as more labor is employed. 
B) the marginal product of labor is decreasing as more labor is employed. 
C) the capital and labor are perfect substitutes. 
D) capital and labor have to be employed in fixed proportions.

Quizplus · Accepted Answer

The graph shows that as more labor is employed, the marginal product of labor increases.

-In the Above Figure,Graph D with Capital on the Vertical