📚 Learning Guide
Diminishing Marginal Returns
hard

If a farmer adds more workers while keeping the amount of land constant, the total output will always increase, but the output per worker will eventually decrease due to diminishing marginal returns.

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Answer

When a farmer adds more workers to the same amount of land, the total amount of crops produced usually increases because there are more hands to help with the work. However, there comes a point where adding even more workers does not lead to a proportionate increase in output. This is known as diminishing marginal returns, which means that each additional worker contributes less to the overall production than the worker before. For example, if the farmer starts with one worker and they can produce ten bushels of corn, adding a second worker might increase the total to twenty bushels. But if a third worker joins, the total might only go up to twenty-five bushels, showing that while total output rises, each worker is not as productive as the first.

Detailed Explanation

When a farmer adds more workers to the same land, they can produce more crops at first. Other options are incorrect because Some might think that more workers always means better results.

Key Concepts

Diminishing Marginal Returns
Production Efficiency
Resource Allocation
Topic

Diminishing Marginal Returns

Difficulty

hard level question

Cognitive Level

understand

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