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Declining loan default rates represented by a downward bar chart and arrow.

What Is Constant Default Rate (CDR)?

The Constant Default Rate (CDR) is an annualised measure of the rate at which loans in a pool default. It is commonly used to assess the per...
2 min read
Business economics

Productivity answers

Saddique Ansari • January 29, 2019 • 1 min read

Author bio

WORKERS TOTAL PRODUCT AVERAGE PRODUCT MARGINAL PRODUCT
1 6 6
2 16 8 10
3 28 9.3 12
4 42 10.25 14
5 56 11.12 14
6 66 11 10
7 69 9.8 3
8 70 8.7 1
9 69 7.6 -1

Answer
Assuming one factor is fixed, the addition of extra workers will result in increasing returns followed eventually by diminishing returns.


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