According to the principle of diminishing returns,an additional worker decreases total output.

Question

Quizplus · Accepted Answer

The principle of diminishing returns states that as more units of a variable input (like labor) are added to fixed inputs (like capital or land), the additional output (marginal returns) from each new unit of input will eventually decrease, but total output continues to increase, just at a diminishing rate. It does not state that total output decreases with an additional worker.

According to the Principle of Diminishing Returns,an Additional Worker Decreases