A production function identifies how various inputs can be combined and transformed into a final output.

One important microeconomic principle from production theory is the law of diminishing marginal returns.

This phenomenon is where total output at first increases at an increasing rate but after some point increases at a decreasing rate with respect to a greater quantity of a variable input, holding all other inputs constant.

Economists point to fixed short-run inputs as a basis for diminishing productivity.

Give one example of the law of diminishing returns in the healthcare industry.