The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-"As I add more workers to the factory line, the additional output produced by each additional worker seems to decline. Eventually, the workers just get in each others' way." This statement by a factory supervisor refers to the law of:

Question

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3
 
-"As I add more workers to the factory line, the additional output produced by each additional worker seems to decline. Eventually, the workers just get in each others' way." This statement by a factory supervisor refers to the law of:

Quizplus · Accepted Answer

The statement refers to the concept of diminishing marginal returns, where the additional output produced by each additional unit of input (in this case, each additional worker) eventually decreases. This is a common phenomenon in production and can lead to inefficiencies if not managed properly.

The Below Figure Shows the Various Combinations of the Goods