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The OB manager is looking at staffing for the night shift. The postpartum unit is busy and the labor-delivery unit has four clients in labor. The manager collects data from the nursing staff regarding the acuity of their clients. These data assist the manager in determining the staff for the next shift. This is an example of which type of system?
Diminishing Marginal Returns
The principle that as additional units of a factor of production are added, the increase in output will eventually decrease, holding other factors constant.
Constant Returns to Scale
A situation where increasing all inputs by a certain factor results in output increasing by the same factor, indicating proportionate scalability of production.
Increasing Returns to Scale
Occurs when an increase in all inputs by a certain percentage causes a more than proportional increase in output.
Decreasing Returns to Scale
Decreasing returns to scale occur when an increase in all inputs leads to a less than proportional increase in output, showing that the firm becomes less efficient as it scales up production.
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