Figure 22-1
-Refer to Figure 22-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement

Question

Figure 22-1 
-Refer to Figure 22-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement

Quizplus · Accepted Answer

Diminishing marginal returns occur when increasing one input, while holding others constant, leads to smaller increases in output. This is shown by moving up along a production function, where each additional unit of input results in less additional output.

Figure 22-1 -Refer to Figure 22-1. Diminishing Marginal Returns Is Illustrated in Is