PRESENTATION OUTLINE
Diminishing marginal returns
Level of production in which the marginal product of labor decreases as # of workers increase.
This is caused by too many workers in/on one area not spread out.Less pay more layoffs also.
Ex.
FOED hires 3,000 when only 1,500 are needed.
Causes not only confusion but slows down space needed to move around to perform task.
