If diminishing marginal returns have already set in for Golden Lark Woodworks, and the marginal product of the 6^th carpenter is 8 chairs, what is the marginal product of the 7^th carpenter? A)Negative. B)Less than 8 chairs. C)More than 8 chairs. D)Zero.

Question

Quizplus · Accepted Answer

Since the law of diminishing marginal returns has set in, the marginal product of each additional unit of labor will be less than the previous one. Therefore, the marginal product of the 7th carpenter will be less than 8 chairs, which was the marginal product of the 6th carpenter.

If Diminishing Marginal Returns Have Already Set in for Golden