Question 39
MediumOriginal questionWhy does marginal product eventually diminish when more labour is added to fixed capital?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
The fixed input is shared among more and more workers.
Once it is fully used, each extra worker adds less: the proportion between inputs has moved past its best.
- Concept
- Reason for diminishing returns
- Typical timeTypical
- 70 s
- Your timeYours
- —
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