When a firm experiences diminishing marginal product, what is the shape of the curve that represents the value of the marginal product of labor?
A)U-shaped
B)vertical
C)downward sloping
D)upward sloping

Question

Quizplus · Accepted Answer

When a firm experiences diminishing marginal product, it means that each additional unit of labor adds less productivity to the firm than the previous unit of labor. As a result, the value of the marginal product of labor decreases as more labor is added. This creates a downward sloping curve for the value of the marginal product of labor.

When a Firm Experiences Diminishing Marginal Product, What Is the Shape