Question

With the use of your own example, explain the "law of diminishing returns".

Answer 1

The law of diminishing returns states that the marginal benefit decreases as additional increments of resources are added. For example, hiring more workers in a factory may initially increase production, but at a certain point, the increase becomes smaller.

Step-by-step explanation:

The law of diminishing returns states that as additional increments of resources are added to a certain purpose, the marginal benefit from those additional increments will decline. For example, let's say a factory is producing chairs. Initially, hiring more workers will result in a significant increase in production. However, at a certain point, the factory becomes overcrowded and adding more workers leads to a smaller increase in production.