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
A)an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor.
B)an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.
C)a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor.
D)a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.

Question

Quizplus · Accepted Answer

With less land available, the remaining land becomes more valuable, increasing its marginal productivity. However, with less land to work on, the marginal productivity of labor decreases as there are fewer opportunities to utilize labor effectively.

As a Result of a Labeling Mistake at the Chemical