Suppose that a firm produces hard candies using both machines and labor, and that its quantity of machines is currently fixed but it can vary the number of workers. as more workers are added to operate the machines, output increases. is this a refutation of the law of diminishing marginal returns

The correct answer is: No

Explanation:

The law of diminishing marginal returns states that, during the production process, inreasing one factor of production (while maintaining all other factors constant) will yield less returns as more units are added until, after certain point, the marginal returns per unit will start decreasing. This does not necessarily translate into a lower level of total output.

In this example, the fact that more workers are added to the operation process does not imply that total production decreases, since it might still continue to increase, but at a lower rate each time.

yes

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