If more and more labor is employed while keeping all other inputs constant,the marginal physical productivity of labor
A)will eventually increase.
B)will eventually decrease.
C)will eventually remain constant.
D)cannot tell from the information provided.

Question

Quizplus · Accepted Answer

This phenomenon is known as the law of diminishing returns, which states that as more units of a variable input (such as labor) are added to a fixed input (such as capital or land), after a certain point the marginal product of the variable input will decrease. Therefore, the marginal physical productivity of labor will eventually decrease.

If More and More Labor Is Employed While Keeping All