When diminishing returns has set in, adding more labor will decrease real GDP per capita.

Name: When diminishing returns has set in, adding more labor will decrease real GDP per capita.
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Question

Quizplus · Accepted Answer

Diminishing returns imply that adding more labor will increase output at a decreasing rate, but it does not necessarily decrease real GDP per capita unless the additional labor significantly outweighs the output increase.

When Diminishing Returns Has Set In, Adding More Labor Will