As the amount of labor input increases ________.This means that the marginal product of labor (MPL)________.
A)the slope of the production function increases;goes up
B)the slope of the production function falls;declines
C)the slope of the production function falls;goes up
D)the slope of the production function increases;declines
E)none of the above

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal returns, as more units of a variable input (labor in this case) are added to a fixed input (capital), the marginal product of the variable input will eventually decrease. This means that the slope of the production function will fall (since the rise over run becomes smaller), indicating a decline in MPL. Therefore, the correct answer is B.

As the Amount of Labor Input Increases ________