Marginal physical product diminishes as additional workers are hired because
A)Each worker has an increasingly smaller amount of other factors with which to work.
B)Each worker has an increasingly larger amount of other factors with which to work.
C)Later hires are not as skilled as earlier hires.
D)Later hires do not work as hard as earlier hires.

Question

Quizplus · Accepted Answer

As additional workers are hired, each worker has an increasingly smaller amount of other factors of production (such as equipment, raw materials, or space) with which to work. This can lead to diminishing returns, as each worker's marginal physical product may decrease over time. This is because the other factors of production may become overused or crowded, limiting each worker's ability to produce more output.

Marginal Physical Product Diminishes as Additional Workers Are Hired Because