Because of the law of diminishing returns,as additional workers are hired,total output
A)Rises at a constant rate at all output levels.
B)Rises at a diminishing rate initially and eventually falls.
C)Falls at a diminishing rate at all output levels.
D)Falls at an increasing rate at all output levels.

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as additional units of a variable input (such as labor) are added to a fixed input (such as capital), the marginal product of the variable input will eventually decrease. This means that initially, total output will rise at a diminishing rate - each additional unit of labor will increase output, but by a smaller amount than the previous unit of labor. Eventually, total output will start to fall as the negative effects of the diminishing returns become stronger.

Because of the Law of Diminishing Returns,as Additional Workers Are