The total output produced with any quantity of labour is equal to the sum of the
A)average products of each of the workers hired.
B)marginal costs of each of the workers hired.
C)marginal products of each of the workers hired.
D)average costs of each of the workers hired.
E)fixed products of each of the workers hired.

Question

Quizplus · Accepted Answer

The total output produced with any quantity of labour is equal to the sum of the marginal products of each of the workers hired. This is known as the law of diminishing returns, which states that as more units of a variable input, such as labor, are added to a fixed input, such as capital, the marginal product of that variable input will eventually decrease.

The Total Output Produced with Any Quantity of Labour Is