<Dl> <Dd> M P L = ∂ F ∂ L (\ displaystyle MPL = (\ frac (\ partial F) (\ partial L))) </Dd> </Dl> <Dd> M P L = ∂ F ∂ L (\ displaystyle MPL = (\ frac (\ partial F) (\ partial L))) </Dd> <P> In the "law" of diminishing marginal returns, the marginal product initially increases when more of an input (say labor) is employed, keeping the other input (say capital) constant . Here, labor is the variable input and capital is the fixed input (in a hypothetical two - inputs model). As more and more of variable input (labor) is employed, marginal product starts to fall . Finally, after a certain point, the marginal product becomes negative, implying that the additional unit of labor has decreased the output, rather than increasing it . The reason behind this is the diminishing marginal productivity of labor . </P> <P> The marginal product of labor is the slope of the total product curve, which is the production function plotted against labor usage for a fixed level of usage of the capital input . </P>

Can the marginal product of capital be negative