The _____ is the situation in which the marginal product of labour is greater than zero and declining as more labour is hired.

Question

Quizplus · Accepted Answer

The situation described in the question is known as the law of diminishing returns, which states that as more units of a variable input (such as labour) are added to a fixed input (such as capital), the marginal product of the variable input will eventually decline. This is due to factors such as overcrowding, decreasing efficiency of workers, and limited resources. The other choices given (A, B, and D) do not appropriately describe this situation.

The _____ Is the Situation in Which the Marginal Product