Question

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will:

A. Fall because fewer workers are working with the same amount of capital.
B. Rise because more workers are working with the same amount of capital.
C. Rise because fewer workers are working with the same amount of capital.
D. Fall because more workers are working with the same amount of capital.

Answer 1

The marginal product of workers in Haiti will rise if workers emigrate, as remaining workers will have more capital to work with, aligning with the law of diminishing marginal product.

Step-by-step explanation:

If the law of diminishing marginal product holds true and workers emigrate from Haiti, the marginal product of the workers remaining in Haiti will C. Rise because fewer workers are working with the same amount of capital.

This occurs because, with fewer workers, there is more capital per worker, potentially leading to increased productivity up to a certain point.

This principle aligns with the general rule of diminishing marginal productivity, which states that as labor increases, there comes a point where the amount of additional output produced starts to decline due to fixed capital.