Suppose that a worker can produce 100 units of output in 7 hours. In the 8th hour, he can produce 12 units of output. The worker can produce 112 units of output in 8 hours.

Diminishing Marginal Product

The principle that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit of input will eventually decrease.

Units Of Output

The quantity of goods or services produced by a firm, sector, or economy within a given time period.