When more workers are hired, the land begins to get 'crowded'. Each worker now has insufficient land to work efficiently. So the output added by each additional worker is now proportionally less as a result the marginal product begins to ____.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Fall
When more workers are hired on a fixed amount of land, the land becomes crowded. This leads to each additional worker contributing less to total output than the previous one. This is known as the Law of Diminishing Marginal Product, and as a result, the marginal product begins to fall.