The idea of diminishing returns to an input in production suggests that if a local college adds more custodians, the marginal product of labor for the custodial staff will _.
A)increase at an increasing
B)rate increase at a decreasing
C)rate decrease
D)not change

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as more and more units of a variable input, such as labor, are added to a fixed amount of other inputs, such as capital or land, the marginal product of that input will eventually decrease. Therefore, adding more custodians will eventually lead to a decrease in the marginal product of labor for the custodial staff, indicating that there are diminishing returns to labor inputs.

The Idea of Diminishing Returns to an Input in Production