Question

According to the law of diminishing returns a. ​Production increases at a decreasing rate b. ​Production increases at a increasing rate c. ​Production decreases at a decreasing rate d. ​Production decreases at an increasing rate

Answer 1

The correct answer is letter "A": Production increases at a decreasing rate.

Step-by-step explanation:

Law of Diminishing Returns states that the marginal product of an additional employee will be less than the marginal product of a previous employee at some point as the number of new employees increases. Adding additional employees at a certain point will saturate the workplace to the point that there will be workers without being assigned duties. There, productivity begins to decrease gradually.