If a business owner can produce more as a whole with an additional worker even if the marginal product associated with that worker is lower than the marginal product associated with the previous worker, then there are:

Question

Josue Mccormick

Business

10 May, 03:09

If a business owner can produce more as a whole with an additional worker even if the marginal product associated with that worker is lower than the marginal product associated with the previous worker, then there are:

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Answers (2)

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Rachel Flowers · Answer 1

Answer: Marginal Income.

Explanation: Marginal Income, since this represents an increase in total income when a unit of the product is sold at market price. The marginal revenue is usually lower if there are many more units sold. This will really be of great benefit to the business owner.

Anabelle Mcguire · Answer 2

diminishing marginal returns

Explanation:

Based on the information provided within the question it can be said that this scenario indicates that there are diminishing marginal returns. Like mentioned in the question this refers to the decrease in marginal output as additional factors of production are introduced into the production process. Which in this case the additional factors would be more workers, since adding an additional worker seems to lower the marginal product.