The Marginal Productivity of Labor Will Eventually Decrease as More

question 145

Multiple Choice

The marginal productivity of labor will eventually decrease as more workers are employed because

• A) average product is increasing.
• B) total product is decreasing.
• C) the amount of capital will also be increasing.
• D) on the average each worker will have fewer inputs to work with.

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Definitions:

Market Power

The ability of a firm to influence or control the price and quantity of goods or services in a market.

Marginal Revenue

The additional income obtained from selling one more unit of a product or service.

Demand Schedule

A table that shows the quantity of a good or service that consumers wish to buy at each price level.

Output

The quantity of goods or services produced by a firm, industry, or economy in a given period.