Suppose the manager of a restaurant notices that when she has too many waiters on the floor for a shift that the waiters get in each other's way and fewer dinners are served. This is an example of
A) diminishing marginal product.
B) diminishing marginal utility.
C) diminishing marginal workforce.
D) diminishing marginal inputs.

Question

Quizplus · Accepted Answer

This is an example of diminishing marginal product, which occurs when adding more of a certain input (in this case, waiters) results in a smaller increase in output (number of dinners served). The manager has observed that adding too many waiters leads to decreased efficiency, indicating that there is a point at which additional waiters no longer contribute much to the restaurant's output.

Suppose the Manager of a Restaurant Notices That When She