When more labor is added to a fixed amount of capital, what is one reason that diminishing marginal returns could occur?

A. New workers aren't paid high enough wages.
B. Capital is more likely to quit functioning properly if a lot of people are using it.
C. There is effectively less capital per worker, and new workers may not be able to be as productive at the margin compared to previous workers.
D. With so many workers, people will slack off because they think someone else will do the job instead.

The reason that diminishing marginal returns could occur when more labor is added to a fixed amount of capital is that there is effectively less capital per worker, and new workers may not be able to be as productive at the margin compared to previous workers.

As more labor is added, the fixed amount of capital gets spread across a larger number of workers, reducing the capital-labor ratio. This reduction in the capital-labor ratio can lead to diminishing marginal returns.

Diminishing marginal returns occur because the fixed amount of capital becomes less effective in complementing the additional labor input. Initially, adding more workers may lead to increased productivity as they can specialize and work together with the existing capital. However, as more workers are added, the limited amount of capital becomes insufficient to support the increasing labor force. This can result in inefficiencies, reduced output, and diminishing returns to each additional unit of labor.

It is important to note that the other options provided in the question (a, b, and d) do not directly relate to the concept of diminishing marginal returns in the context of labor and capital.

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