The marginal productivity of labor will eventually decrease as more workers are employed because
A) average product is increasing.
B) total product is decreasing.
C) the amount of capital will also be increasing.
D) on the average each worker will have fewer inputs to work with.

Question

Quizplus · Accepted Answer

As more workers are employed, the fixed inputs such as capital and land remain the same while the variable input labor keeps increasing. This leads to each worker having fewer inputs to work with, reducing their productivity and causing the marginal productivity of labor to eventually decrease.

The Marginal Productivity of Labor Will Eventually Decrease as More