If diminishing marginal returns have already set in for The Picture Perfect Framing Store and the marginal product of the fifth picture framer is 20, then the marginal product of the sixth picture framer must be
A) negative.
B) zero.
C) less than 20.
D) greater than 20.

Question

Quizplus · Accepted Answer

The principle of diminishing marginal returns states that as more units of a variable input (like labor) are added to fixed inputs (like capital or land), the additional output produced by each new unit of the variable input will eventually decrease. Therefore, if the marginal product of the fifth worker is 20, the marginal product of the sixth worker must be less than 20, assuming all other factors remain constant.

If Diminishing Marginal Returns Have Already Set in for the Picture