other things remaining constant if on a given piece of land more and more units of labour are applied then after a point the marginal product of labour begins to (fall/rise)
Answers
Answered by
2
Answer:
Up and down is the natural evolution
Answered by
0
Answer:
If on a given piece of land more and more units of labour are applied then after a point the marginal product of labour begins to rise.
Explanation:
- In the "law" of diminishing marginal returns, the marginal product initially increases when more of an input is employed, keeping the other input constant. Here, labor is the variable input and capital is the fixed input.
- When the marginal product is increasing, the total product increases at an increasing rate. If a business is going to produce, they would not want to produce when marginal product is increasing, since by adding an additional worker the cost per unit of output would be declining.
- The marginal product of labor (or MPL) refers to a company's increase in total production when one additional unit of labor is added (in most cases, one additional employee) and all other factors of production remain constant.
Similar questions