Question

If more and more capital and labour are employed on a piece of land after a certain point, the output increases by _________.

• A. more than proportionately
• B. proportionately
• C. less than proportionately
• D. constantly

Answer 1

Answer: (C)

less than proportionately

This happens due to negative marginal returns for eg , in case of excessive employment in a particular land. At this point withdrawal of workers will help to increase the total output.