Diminishing marginal productivity can occur due to the following reason(s)
A)the difficulty of monitoring and motivating larger workforces
B)the increasing complexity of larger systems
C)the "fixity" or permanence of some factor of production
D)all of the above

Question

Diminishing marginal productivity can occur due to the following reason(s)​
A)​the difficulty of monitoring and motivating larger workforces
B)the increasing complexity of larger systems
C)the "fixity" or permanence of some factor of production
D)​all of the above

Quizplus · Accepted Answer

All of the above reasons can lead to diminishing marginal productivity. As the workforce grows larger, monitoring and motivating each employee becomes more difficult, leading to decreased efficiency. Similarly, larger systems can become increasingly complex, leading to more complications and inefficiencies. Finally, the "fixity" or permanence of some factors of production, such as land or machinery, means that there are limits to how much output can be increased by adding more of these inputs.

Diminishing Marginal Productivity Can Occur Due to the Following Reason(s)​

Diminishing Marginal Productivity Can Occur Due to the Following Reason(s)