Final answer:
The law of diminishing returns suggests that as more individuals are added to a group, their marginal contribution declines. This concept can help determine optimal team size and influence group dynamics. Marginal analysis can assist in deciding at what point additional resources become less beneficial.
Step-by-step explanation:
The law of diminishing returns applies to group influence in that as more people are added to a group to achieve a goal, each additional person's contribution may result in a reduced marginal benefit. Just as with resources in production, there is a point where adding more individuals to a group effort will yield lesser increments in productivity or output, possibly due to factors like overcrowding, limited roles, and inefficient coordination.
Marginal analysis could be used to determine the point at which the addition of resources, including group members, is no longer beneficial. This concept is related to making decisions regarding whether a little more or a little less of a resource can be beneficial from the status quo. In the case of group dynamics, understanding where the point of diminishing returns begins can help optimize team size and composition.
It's important to distinguish this economic principle from normative statements, which describe how the world should be, rather than explaining how it actually operates as with the law of diminishing returns.