Do labor skills have diminishing marginal productivity?
Diminishing Marginal Product:
An expansion in one input while keeping the other inputs relentless will prompt an increase in the level of output. This increase in the level of output will not have consistency. The expansion in the level of output might be significant in the underlying stages, however extra units of the inputs will prompt to a slow output growth. After a specific point, the level of output may quit expanding or may even decrease. This is a result of the law of diminishing marginal productivity.
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fromChapter 17 / Lesson 16
Learn about labor productivity. Understand how to calculate labor productivity, examine the labor productivity formulas, and see how to improve labor productivity.