The law of diminishing marginal returns suggests that bakery shops should employ many additional units of labour during busy times of the week.

Question

Quizplus · Accepted Answer

The law of diminishing marginal returns states that adding more units of a factor of production, like labor, will eventually yield lower per-unit returns, suggesting that there is an optimal level of labor beyond which efficiency decreases.

The Law of Diminishing Marginal Returns Suggests That Bakery Shops