Question

Suppose when a firm hires more workers, it does not get as much extra output from those workers as it did. This is an example of what?

Diminishing marginal capital. Diminishing Marginal Product. Diminishing average product. Diminishing variable cost.

Using the information of the last question, how would the introduction of UBER, a ride share firm, affect the equilibrium?

		It wouldn't since the medallions are in fixed supply.
		It would cause demand to rise putting upward pressure on price.
		It would cause supply to shift out but the price would not change since the number of medallions is fixed.
		It would cause a shift of supply outward causing the price of a medallion to fall. and a taxi ride to fall.

Answer 1

Question- Suppose when a firm hires more workers, it does not get as much extra output from those workers as it did. This is an example of what?

Answer- This is an example of Diminishing marginal product,as because according to law of Diminishing marginal product if variable factor of production is increased here in this case it is labor or workers then a point will come when the labor becomes less productive.

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