The marginal physical product of labor for the most recent worker hired by Ajax is 286. If Ajax were to hire an additional worker we would expect the marginal physical product of labor to

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as additional units of a variable input are added while holding all other inputs constant, the marginal product of that variable input will eventually decrease. Given that the marginal physical product of labor for the most recent worker hired is 286, it is likely that adding an additional worker will result in diminishing returns, meaning the marginal physical product of labor for the new worker will be below 286. Therefore, the best choice is B.

The Marginal Physical Product of Labor for the Most Recent