If hiring more workers results in each additional worker contributing successively smaller amounts of output, then which of the following is present?
A)diminishing profitability
B)diminishing total product
C)diminishing marginal product
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

This situation is known as diminishing marginal product, which means that each additional worker added to the production process contributes less and less to output. This can result in a decrease in total product (choice B) and potentially lower profitability (choice A), but the specific impact on profitability would depend on the cost of hiring additional workers.

If Hiring More Workers Results in Each Additional Worker Contributing