If labor is a variable input in production, the law of diminishing marginal returns implies that in the short run
A) labor's marginal product is constant.
B) labor's marginal product decreases after a certain point.
C) total product is negative.
D) total product is negative after a certain point has been reached.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that as more units of a variable input (like labor) are added to fixed amounts of other inputs, the additional output produced by each new unit of input will eventually decrease. This means that after a certain point, the marginal product of labor decreases.

If Labor Is a Variable Input in Production, the Law