How can you represent diminishing returns by using a graph?

Answer

Diminishing return is the presentation of how production loses its efficiency when certain factors are added. For example, a company may produce automobiles at a rate of 100 per day with 100 workers, but adding 100 more workers may only increase production by 10 cars per day. Because the rest of the production process is not increased to match the number of employees, a percentage of the additional workers do not increase production. A graph can be used to represent this by listing the number of vehicles produced on one axis and the number of employees on another axis.
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