Table 18-7
-Refer to Table 18-7. The fact that the production function exhibits diminishing marginal productivity implies that
A)total production decreases beyond a certain level of output.
B)labor markets are not always competitive.
C)the additions to total output get smaller as more workers are hired.
D)marginal profit is negative.

Question

Table 18-7 
-Refer to Table 18-7. The fact that the production function exhibits diminishing marginal productivity implies that
A)total production decreases beyond a certain level of output. 
B)labor markets are not always competitive. 
C)the additions to total output get smaller as more workers are hired. 
D)marginal profit is negative.

Quizplus · Accepted Answer

Diminishing marginal productivity means that each additional unit of labor hired contributes less and less to total output, resulting in smaller additions to total output as more workers are hired.

Table 18-7 -Refer to Table 18-7. the Fact That the Production Function