If an increase in the number of workers leads to all workers becoming less productive, this situation is called:

Question

Quizplus · Accepted Answer

Diminishing marginal product occurs when adding additional units of a variable input (such as labor) leads to a decrease in the marginal product of that input. This means that as more workers are added, each additional worker adds less output than the previous worker, eventually leading to a decrease in overall productivity.

If an Increase in the Number of Workers Leads to All