Question:

The marginal productivity of labour:

A.

increases when the price of the good sold increases, ceteris paribus

B.

decreases when there is an adverse supply shock, ceteris paribus

C.

increase when more workers are hired, ceteris paribus

D.

decreases when there is an increase in the quantity of capital, ceteris paribus

Answer» b. decreases when there is an adverse supply shock, ceteris paribus