After hiring a new employee,a manager finds that the total output has increased.When the manager hires another employee however,he realizes that although the total production has increased,the increment is less than the previous case.This is the result of:

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Quizplus · Accepted Answer

This is due to the concept of diminishing marginal returns, which states that as more units of a variable input (such as hiring more employees) are added to a fixed input (such as machinery or infrastructure), the marginal product of the variable input will eventually decrease. In this case, the manager experienced an increase in output with the first new employee, but the increase was not as significant with the second employee due to diminishing returns.

After Hiring a New Employee,a Manager Finds That the Total