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We often observe that addition of another unit of labor increases output but by an amount that is smaller than the addition of the previous unit of labor. In such a situation the producer is experiencing

diminishing labor.

diminishing output.

diminishing marginal product.

negative marginal product.

Answer :

Answer:

The producer is experiencing diminishing marginal product.

Explanation:

The law of diminishing return explains that every additional unit consumed will have less utility/return than the previous one. Same is the case with labor productivity. The first unit of labor will yield maximum return, every additional unit will result in lesser return/productivity than the previous unit. The will continue up to the point of maximum return. After that point adding additional resources will yield less total output.

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