As the _____ of labor used in production increases,ceteris paribus,eventually the _____ of labor will _____.A) price;supply;increaseB) quantity;marginal product;fallC) quantity;marginal product;riseD) quantity;value of the marginal product;rise

Question

Terry Dogan · Accepted Answer

Final Answer : B, Explanation :  According to the law of diminishing marginal returns, as the amount of labor used in production increases, eventually the marginal product (or the additional output produced by each additional unit of input) will decrease, leading to a fall in the quantity of labor used in production. Therefore, option B (quantity; marginal product; fall) is the correct answer.

As the ___ of labor used in production increases,ceteris paribus,eventually the _ of labor will ___.

A) price;supply;increase
B) quantity;marginal product;fall
C) quantity;marginal product;rise
D) quantity;value of the marginal product;rise

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