According to the law of diminishing returns, what is the expected result of adding more workers to the production process if all other factors remain unchanged?

Enhance your restaurant management skills with our DECA Quick-Serve Exam. Master multiple-choice questions, each with detailed hints and explanations. Prepare effectively for your DECA certification!

The law of diminishing returns describes a phenomenon where, when increasing one input in the production process while keeping all other inputs constant, the additional output gained from each additional unit of input will eventually decline. In this context, as more workers are added to a fixed amount of resources (like equipment or space), each new worker will contribute less and less to the overall output.

Initially, adding more workers might lead to a significant rise in output because tasks can be completed faster with more hands. However, after reaching an optimal point of efficiency, the impact of each additional worker diminishes. This happens because workers may begin to crowd one another, experience waiting times for equipment, or face limitations in space. Consequently, while total output may still increase, the rate of that increase slows down; hence, each worker added results in smaller and smaller increments of output.

This principle is critical for efficient resource management in any establishment, especially within a quick-serve restaurant environment where labor and space must be optimized for peak service delivery.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy