As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. As a result, she loses half of her productive farmland. If the property of diminishing returns applies to all factors of production, she should expect to see the marginal productivity of her remaining land
A)increase.
B)remain unchanged.
C)decrease but remain positive.
D)decrease and become negative.

Question

Quizplus · Accepted Answer

With diminishing returns, as the quantity of one factor (land) decreases, the marginal productivity of the remaining land increases because the other factors of production (like labor and capital) are now concentrated on a smaller area.

As a Result of a Labeling Mistake at the Chemical