Question

Hello I need help this is for eco2023

What do economists mean by “diminishing returns” to an input? What causes diminishing returns? Have you ever observed this principle at work in a job you’ve had or in a real world situation? Discuss the long and short run impact of this concept on the firm. Your initial post should be substantial and answer the questions in detail. Also, you must post at least TWO replies to others' posts. Your replies must be a minimum of 4 sentences long and, again, must be meaningful and detailed. Provide at least one quotation from your research and its source (Must be after July 1, 2019)

Answer 1

Answer) Diminishing returns to input implies that as the inputs like labor increases, the output starts to decline. This property is based upon the doctrine of too much cook spoils the broth. This trait exist because of the disguised unemployment.

For instance, if a factory keeps in increasing the number of labor without equipping them with the vital tools. Then the workers are not becoming productive. Rather they are a liability for the firms.

The trait of diminishing return is generally seen in short run only for labor. However this lacunae can be addressed in the long run by incorporating the desired level of technology to attain the optimal level of output.