The diminishing marginal product of labor exists when the last worker hired produces ________ the previous worker.
A) more output than
B) more value than
C) less value than
D) the same amount of output as
E) the same amount of value as

Question

Quizplus · Accepted Answer

The diminishing marginal product of labor occurs when the last worker hired produces less output than the previous worker. This happens when a firm adds more workers to a fixed amount of capital, resulting in each additional worker having less capital to work with and therefore being less productive than the previous worker. So, the correct answer is C, as it states that the last worker produces less value than the previous worker.

The Diminishing Marginal Product of Labor Exists When the Last