Suppose that for a given firm, the increase in output resulting from the last worker hired is less than the increase in output of the previous worker hired. This is an example of

Question

Quizplus · Accepted Answer

This scenario is an example of diminishing returns, where the marginal product of labor decreases as more workers are hired. This is because the firm may not have enough resources (such as capital or space) to keep increasing output at the same rate with each additional worker.

Suppose That for a Given Firm, the Increase in Output