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

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Quizplus · Accepted Answer

This situation is an example of diminishing marginal product, which means that each additional unit of input (in this case, worker) contributes successively smaller amounts of output. As a result, the overall productivity or output decreases, which can lead to a decrease in profits. Diminishing marginal cost refers to a situation where the cost of producing additional units of output decreases as more inputs are added, while diminishing total product refers to a situation where the total output eventually starts decreasing as more inputs are added.

If Hiring More Workers Results in Each Additional Worker Contributing