Diminishing marginal product of labour means:

Question

Quizplus · Accepted Answer

Diminishing marginal product of labor means that as more units of labor are added, the additional output produced by each new worker decreases. This does not necessarily mean total output decreases with the addition of a worker (A), nor does it imply each new worker is more productive than the last (B), or that removing a worker increases total output (C). However, if the marginal product is diminishing, removing a worker could indeed increase the marginal product of the remaining workers, as they would have more resources or less crowding to deal with, thus potentially increasing their productivity.

Diminishing Marginal Product of Labour Means