In the Ricardian model, the marginal product of labor:
A) first rises, then falls, as more labor is employed to produce a good.
B) first falls, then rises, as more labor is employed to produce a good.
C) continuously falls as more labor is employed to produce a good.
D) does not change as more labor is employed to produce a good.

Question

Quizplus · Accepted Answer

In the Ricardian model, the assumption is that technology is fixed and there are constant returns to scale, meaning the marginal product of labor remains constant as more labor is employed to produce a good.

In the Ricardian Model, the Marginal Product of Labor