Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

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 ____.

Options:

Constant

Rise

Fall

Zero

Correct Answer:

Fall

Explanation:

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.