Question

Additional workers will increase a company's to a certain point until gains frombegin to decline. At this point, will continue to increase, but ___________ will diminish with each additional worker. Eventually there will be too many workers and not enoughto keep them busy inevitably slowing down production.

Answer 1

Answer:

Marginal product

Explanation:

There would be an increase in the marginal product of labour. more workers would result in more specialization in skilled areas. As workers increase, it is expected that work done would rise also.

Such that a time would come when the workers would be enough and no more gains would be accrued from specialization. We refer to this as the point of diminishing marginal product. capital would be fixed such that as more workers are used capital declines for each worker.