I need some guidance for the following economics questions:
A. What is the law of diminishing marginal productivity? Give an example from your workplace/household of the law of diminishing marginal productivity?.
a) Why is the demand of labor a derived demand?
b) What is the relationship between productivity and the wages earned by an employee? What are some factors that determine the level of your income?
Get the answer with the attachment.
(a) According to the law of marginal productivity, when more and more units of variable inputs are employed keeping other things constant then in this situation the total output (productivity) eventually increases at diminishing rate i.e. it initially increases at increasing rate then at the constant rate finally declines with additional units of variable input. This is the reason this law is also called as law of ...
The relationship between productivity and the wages earned by an employee is illustrated in this tutorial. It is just under 300 words with references.