PRC-3 · Chapter 12 · Question 18 of 69
In the third stage of the Law of Variable Proportions (Negative Returns), a farm hires so many workers that they trample the crops, causing total total harvest yield to actually drop. What is the Marginal Product of the last worker?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Negative
Explanation
If adding a worker causes the total output to physically decline, that worker's marginal contribution (Marginal Product) is mathematically negative.
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