Question
Respond to a classmate's example. What actions could we take to increase marginal returns in the example? Should we even be attempting to increase these?
Respond to a classmate's example. What actions could we take to increase marginal returns in the example? Should we even be attempting to increase these? In some cases, the answer may be no, but it will ultimately depend upon the specific example.
"Diminishing marginal product is defined as the marginal product of an input declines as the quantity of the input increases. An example of this would be a hungry person eating bananas. At first, the bananas will be very valuable and provide nutrition and fill the person's hunger. But after a few bananas, if the person keeps eating them, the more full they will become, and the less valuable the bananas will become to the person."
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