Question

Mr. Woodard's cabinet shop is experiencing rapid growth in sales. As sales have increased, Mr. Woodard has found it necessary to hire more workers. However, he has observed that doubling the number of workers has less than doubled his output. What is the likely explanation?

Answer 1

The law of diminishing marginal productivity

Explanation:

The law of diminishing marginal productivity is the law that has been used in an organization. It is an economic principle that has been applied by a manager in the management of an organization. The slight input will gain production. It is also called a marginal increase in the productivity of the organization. The marginal increase found in the product calculation. Only the production manager considers the law of marginal diminishing law.