The law of diminishing marginal product of labor is demonstrated by which of the following?

a. Total output increases only when you increase both labor and ovens.

b. Total output increases at a decreasing rate as you increase the quantity of labor.

c. Total output declines as you increase the quantity of labor.

Question

Business

Romero

6 July, 00:43

The law of diminishing marginal product of labor is demonstrated by which of the following?

a. Total output increases only when you increase both labor and ovens.

b. Total output increases at a decreasing rate as you increase the quantity of labor.

c. Total output declines as you increase the quantity of labor.

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Answers (1)

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Anna White · Answer 1

Option b. Total output increases at a decreasing rate as you increase the quantity of labor.

Explanation:

According to the following definition:

The law of diminishing marginal productivity states that while increasing one input and keeping other inputs at the same level may initially increase output, further increases in that input will have a limited effect and will eventually have no effect, or a negative effect, on output.