The law of diminishing returns applies to which of the following segments of the marginal product of labour curve?

Question

Quizplus · Accepted Answer

The law of diminishing returns applies only to the downward-sloping segment of the marginal product of labour curve, where increasing the amount of labour leads to a smaller increase in output. In the upward-sloping segment, increasing labour leads to a greater increase in output, while at the point where labour input is zero, there is no output to measure. Therefore, the best choice is B as it applies only to the relevant segment of the curve.

The Law of Diminishing Returns Applies to Which of the Following