The idea of diminishing returns to an input in production suggests that,if a local university adds more custodians,the marginal product of labour for the custodial staff will:
A) increase at an increasing rate.
B) increase at a decreasing rate.
C) decrease.
D) not change.

Question

Quizplus · Accepted Answer

Diminishing returns occur when each additional unit of input leads to a smaller increase in output than the previous unit of input. Therefore, as the university adds more custodians, they will eventually reach a point where the marginal product of labor for the custodial staff will decrease. This is because there may not be enough work or resources for the additional staff to be fully utilized, leading to lower productivity and efficiency.

The Idea of Diminishing Returns to an Input in Production