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The law of diminishing marginal return states that when variable factors are added continuously to the fixed factors, holding technology level constant, the marginal output will eventually diminish.
Assume the factory has 100 workers
After 95 workers are employed:
Assume the factory has 100 workers
After 95 workers are employed:
| No. of workers coming to work | Marginal output (units) |
| 95 | / |
| 96 | 60 |
| 97 | 50 |
| 87 | 40 |
| 99 | 30 |
| 100 | 20 |
Hence the case fits the law.
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