According to the law of diminishing returns, if a factory keeps adding more workers while keeping the amount of machinery constant, eventually: Total output will start to decrease. Output per worker will start to increase. The additional output generated by adding another worker will start to decrease. The factory will become more efficient.
According to the law of diminishing returns, if a factory keeps adding more workers while keeping the amount of machinery constant, eventually: Total output will start to decrease. Output per worker will start to increase. The additional output generated by adding another worker will start to decrease. The factory will become more efficient.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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