When the existing factory is becoming increasingly crowded and workers must wait for their turn to use existing tools,it is an example of diminishing

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Diminishing marginal returns is a concept in economics which states that as more and more units of a variable input, such as labor, are added to a fixed input, such as a factory or land, the overall output of the production process will eventually begin to decrease. In this scenario, the increasing number of workers using the same set of tools is an example of diminishing returns, as the workers are unable to work as efficiently as they would with their own set of tools.

When the Existing Factory Is Becoming Increasingly Crowded and Workers