Answer:
The correct answer is letter "C": diminishing marginal product of Labor.
Explanation:
The diminishing marginal product of Labor is based on the diminishing marginal returns law that establishes as long as input keeps being added there will be a point in which the output increases in a decreasing rate. In the case of the diminishing marginal product of Labor, what happens is that as more workers are hired in a company, there will be less space for all of them to work.
Therefore, the productivity of adding more employees, under those circumstances, increase productivity but in lower levels.
