The law of diminishing marginal returns,when applied to labor,states that:
A)each worker makes a very small contribution to the total output.
B)each worker adds more to total output than the previous worker.
C)each additional worker contributes a smaller increase to total output.
D)each additional worker causes average output to rise at an increasing rate.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as additional units of a variable input (such as labor) are added to a fixed amount of other inputs (such as capital or land), the marginal product of that variable input will eventually diminish, meaning that each additional worker contributes a smaller increase to total output than the previous worker. This occurs because there is a limit to how much output can be produced with a fixed amount of other inputs, and adding more workers eventually leads to inefficiencies and diminishing returns.

The Law of Diminishing Marginal Returns,when Applied to Labor,states That