Asked by
Hillman Smith
on Dec 05, 2024Verified
The idea of diminishing returns to an input in production suggests that,if a local college adds more custodians,the marginal product of labor for the custodial staff will:
A) increase at an increasing rate.
B) increase at a decreasing rate.
C) decrease.
D) not change.
Diminishing Returns
An economic concept indicating that as more investment is made in a particular area, the rate of profit from that investment, after a certain point, starts to decline.
Marginal Product
The additional output produced by using one more unit of a particular input, while holding other inputs constant.
- Absorb the principle of diminishing returns and its effect on productive output.
- Ascertain the consequences of integrating additional labor into total and marginal production across assorted production environments.
Verified Answer
MH
Learning Objectives
- Absorb the principle of diminishing returns and its effect on productive output.
- Ascertain the consequences of integrating additional labor into total and marginal production across assorted production environments.
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