Based on the law of diminishing returns,if the number of workers increases and capital investments do not keep pace then,ceteris paribus:
A) Marginal physical product of labor will increase.
B) Marginal physical product of labor will decrease.
C) The production function will definitely shift upward.
D) The average total cost curve will definitely decrease.

Question

Quizplus · Accepted Answer

According to the law of diminishing returns, if the number of workers increases while capital investments do not keep pace, the marginal physical product of labor will eventually decrease. This is because the additional workers will start to interfere with each other and the available resources, leading to decreased productivity.

Based on the Law of Diminishing Returns,if the Number of Workers