The law of diminishing returns is a very important concept in economic theory. In a couple of sentences define the term and explain its importance? Using this theory, what happens to the marginal product of labor as you introduce many workers into the economy (Hint: Do workers become more or less productive and why)? Can you provide a situation in your own lives where the law of diminishing marginal productivity can be observed?© BrainMass Inc. brainmass.com March 4, 2021, 9:41 pm ad1c9bdddf
The law of diminishing returns state that as a producer of goods uses more of a variable production input, with a given quantity of other fixed inputs, the marginal product of the variable input eventually diminishes. Thus the law of diminishing returns help ...
The law of diminishing demands is determined. Economic theory concepts are given. The marginal productivity is observed.