If hiring more workers results in each additional worker contributing successively smaller amounts of output,then which of the following applies

Question

Quizplus · Accepted Answer

Diminishing marginal product refers to the situation where each additional unit of input (in this case, a worker) contributes successively smaller amounts of output. This can be due to various factors such as limited resources, congestion, or poor coordination among workers. As a result, the overall productivity and efficiency of the production process can decline with each additional unit of input. This can lead to higher costs and lower profitability for the firm.

If Hiring More Workers Results in Each Additional Worker Contributing