If successive unit of labour are added to a piece of land while capital and...
ECONOMICS
WAEC 1994
If successive unit of labour are added to a piece of land while capital and technology remains constant, a point will be reached in the level of production when each additional unit of labour will add less to the output than previous units. This concept is known as
- A. productivity of labour
- B. law of diminishing marginal utility
- C. law of diminishing returns
- D. law of diminishing returns of a variable factor
Correct Answer: C. law of diminishing returns
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