If we add successive laborers to work a given amount of land on a wheat farm, eventually
A) average total cost will fall to zero.
B) the increases in wheat harvested will rise at a constant rate.
C) the increases in wheat harvested will get smaller and smaller.
D) the increases in wheat harvested will get larger and larger.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns applies to agriculture as well. Adding successive laborers to work the same amount of land will eventually lead to decreasing marginal returns, which means that the increases in wheat harvested will get smaller and smaller. This occurs because adding more laborers leads to overcrowding and inefficiencies in the use of resources. Therefore, the correct answer is (C) the increases in wheat harvested will get smaller and smaller.

If We Add Successive Laborers to Work a Given Amount