Respuesta :
If there are diminishing returns, then what happens to productivity if both capital and labor increase, It is not necessary that Productivity will definitely fall or it will remain unchanged or it will definitely rise.
What Is the Law of Diminishing Marginal Productivity?
The law of diminishing marginal productivity is an economic principle often considered by managers in managing productivity. Usually, it turns out that the benefit derived from a slight improvement on the input side of the output equation will only increase slightly per unit and may level off or even decrease after a particular point in time.
Falling marginal productivity usually occurs when beneficial changes are made to input variables that affect total productivity.
The law of diminishing marginal productivity states that when an advantage is gained in a factor of production, the yield obtained from each subsequent unit of production will only increase slightly from unit to unit.
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