1. What is the law of diminishing marginal productivity? How does it differ from average productivity?
2. What is derived demand? What is the relationship between the productivity of an employee and his or her wages?© BrainMass Inc. brainmass.com March 4, 2021, 9:42 pm ad1c9bdddf
The law of diminishing marginal productivity tells us that after a certain point, each additional workers will contribute less to total output than the prior worker. This occurs because fixed inputs, such as factory space, can only accomodate a certain number of ...
The law of diminishing marginal productivity; derived demand; productivity as it relates to wages.