The negative slope of the value of marginal product curve is most easily explained by
A)tight labor markets.
B)a surplus of workers.
C)diminishing marginal product.
D)diminishing marginal cost.

Question

Quizplus · Accepted Answer

The negative slope of the value of marginal product curve is due to the principle of diminishing marginal product, which states that as more units of a variable input are added to a fixed input, the marginal product of the variable input will eventually decrease. This decrease in marginal product causes the value of each additional unit of input to decrease, resulting in a negative slope for the curve.

The Negative Slope of the Value of Marginal Product Curve