Frage

In the short run, if we continue to add workers to other fixed factors of production, we will eventually experience_ diminishing utility. diminishing satisfaction. diminishing returns. diminishing revenues.

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Antwort

The correct answer is diminishing returns.

Erklärung

In economics, the concept of diminishing returns refers to the decrease in the incremental output or benefit gained from adding an additional unit of input, while keeping other inputs constant. When more workers are added to fixed factors of production, each additional worker contributes less to overall output than the previous one, leading to diminishing returns.

Here are further explanations.

Diminishing utility refers to the decrease in satisfaction or pleasure derived from consuming additional units of a good or service, which is not directly related to production.
Diminishing satisfaction is similar to diminishing utility and focuses on consumer satisfaction rather than production output.
Diminishing revenues would imply a decrease in total income generated, which is not the primary focus of the production process being described.

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