Question

What happens to marginal product after a certain point, if more and more labour is added to fixed land?

Options

• Marginal product keeps rising

• Marginal product stays the same

• Marginal product decreases

• Marginal product becomes equal to average product

Answer 1

Marginal product decreases

Explanation:

After a certain point, marginal product starts to fall and can even become negative when too much labour is used.