Diminishing marginal returns to labour means that as each additional unit of labour is applied to a fixed amount of capital, output will eventually begin to increase at a decreasing rate.

Question

Quizplus · Accepted Answer

Diminishing marginal returns to labor occur when adding more labor to a fixed amount of capital results in smaller increases in output, as the additional workers have less capital to work with efficiently.

Diminishing Marginal Returns to Labour Means That as Each Additional