ABSTRACT

At some point, increased effort put into a task or operation will not result in an equal increase in output. Let's look at a production line as an example. Suppose five workers are able to produce 100 items each hour, or 20 items per person. Six workers are able to produce 132 each hour, or 22 items per person. The additional worker has increased overall productivity from 20 to 22 units per person per hour. But in this case, it turns out that adding one more worker to the line, for a total of seven, results in 147 units produced each hour, or 21 units per person. An Example of Diminishing Returns https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">

Number of Employees

Total Units Produced per Hour

Units Produced per Person

5

100

20

6

132

22

7

147

21