Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

When more and more workers are applied on the fixed land then the marginal productivity of additional worker will .............. to the total output.

Options:

Rise

Become Horizontal

Become Vertical

Fall

Correct Answer:

Fall

Explanation:

The correct answer is Option (4) → Fall

When more and more units of a variable factor (labour) are employed on a fixed factor (land), the marginal productivity of the additional workers eventually falls.

This happens due to the Law of Diminishing Marginal Returns, which states that: As more units of a variable factor are combined with a fixed factor, the additional output (marginal product) from each new unit of the variable factor will eventually decrease.

At first, total output rises at an increasing rate, then at a decreasing rate, and finally may even decline.