What happens to the marginal product of labor if more capital is added to a production process?
A. More capital will cause the marginal product of labor not to diminish.
B. More capital will affect the marginal product of capital, not the marginal product of labor.
C. More capital generally causes the marginal product of labor to rise.
D. More capital generally causes the marginal product of labor to fall.
Answer: C
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Indicate whether the statement is true or false
The level of household debt incurred over the two decades leading up to the 2008 crisis was only sustainable if interest rates:
A. and housing prices both remained high. B. remained low and housing prices remained high. C. remained high and housing prices remained low. D. and housing prices both remained low.