Question

Give your personal observation or experience in which the principle of decreasing marginal product can be applied to a real-life situation. Alternatively, you may use a published material for a real-life situation, but then you need to cite the source of information.

Answer 1

Also called the Law of diminishing returns states as we add one additional unit of Input in the production of a product while keeping all other things constant, a point will come at which adding more units would yield diminishing units of increases in production.

An example of this law could be, As you sit for studying for your exam, in the initial hours you can grasp more as compare to ending hours although the time spent is the same.

Another example of this could be of a restaurant owner who owns a restaurant, he begins to hire more workers to get the optimum level of production. The productivity of each worker would rise to a certain point after that if we keep on adding the workers it would starting decreasing from the peak of it.

Source:

https://www.britannica.com/topic/diminishing-returns

https://study.com/academy/lesson/law-of-diminishing-returns-definition-examples-quiz.html