If adding another worker to a production line barely increases productivity, what is that an example of?

The scenario described illustrates the principle of diminishing returns. This concept occurs when the addition of a variable input, such as labor, results in progressively smaller increases in output. When adding another worker to a production line results in only a slight boost in productivity, it highlights that the factors of production are not being utilized efficiently.

Initially, as more workers are added, productivity may increase significantly, but beyond a certain point, the ability of additional workers to contribute effectively diminishes. This typically happens in a fixed production environment where other resources, such as machinery or space, remain unchanged. Thus, the correct answer emphasizes that the marginal gains from adding more labor are decreasing, illustrating the key concept of diminishing returns in production economics.