Explore BrainMass

Explore BrainMass

    The law of diminishing marginal productivity

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    Solution Preview

    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 ...

    Solution Summary

    The law of diminishing marginal productivity; derived demand; productivity as it relates to wages.