Law of Diminishing Marginal Returns (Old Version): Econ Concepts in 60 Seconds Microeconomics

Mr. Clifford from ACDC Econ explains the law of diminishing marginal return in a concise manner. He discusses the relationship between inputs and outputs, using a lawn mowing business as an example. The video covers how to calculate marginal product and illustrates how specialization can initially increase productivity. However, as more workers are added to fixed resources, the additional output begins to decline, demonstrating the law of diminishing marginal returns.

Explain the relationship between inputs and outputs in the context of hiring workers.

Describe a scenario where the law of diminishing marginal returns is observed.

What is the law of diminishing marginal returns?

What happens to the marginal product as more workers are added?

How does adding more workers affect total output according to the law of diminishing marginal returns?