"As I add more workers to the factory line,the additional output produced by each additional worker seems to decline.Eventually,the workers just get in each others' way." This statement by a factory supervisor refers to:
A)the law of comparative advantage.
B)the law of demand.
C)the law of supply.
D)the law of diminishing marginal utility.
E)the law of diminishing marginal returns.

Question

Quizplus · Accepted Answer

The supervisor's statement refers to the concept of diminishing marginal returns, which states that as more units of a variable input (in this case, workers) are added to a fixed input (the factory line), the marginal product of the variable input will eventually decrease, leading to less additional output produced by each additional unit of the variable input. Eventually, the added workers may even start to get in the way of each other, leading to lower total output.

"As I Add More Workers to the Factory Line,the Additional