With all other inputs held fixed, the marginal product of any input must eventually increase as more of that input is hired. ?
Answer the following statement true (T) or false (F)
False
Rationale: With all other inputs held fixed, the marginal product of any input must eventually diminish as more of that input is hired. Given the economic reality that the world is governed by scarcity, each additional labor hour hired, for example, will add less to our total output than the previous labor hour. This is the Law of Diminishing Marginal Product.
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