As a result of an increase in capital, ceteris paribus, ------ the marginal productivity of labour:
A)Remains constant
B)Increase
C)decreases
D)none of these

Question

Quizplus · Accepted Answer

An increase in capital, ceteris paribus, typically increases the marginal productivity of labor because workers have more or better tools and equipment to work with, making them more productive.

As a Result of an Increase in Capital, Ceteris Paribus