GB 500 University of South Carolina Columbia Economics for Global Decision Makers Discussion

Law of Diminishing Marginal Productivity The marginal product of any input in the production process is the increase in the quantity of output produced from one additional unit of that input. According to the Law of Diminishing Returns, the marginal product of an input declines as the quantity of the input increases over time, other factors remaining the same.In the workplace, you often see diminishing marginal product, where the additional output produced per worker drops as they perform their jobs over time.