A carpenter hammers nails each day at work.In each of the first three hours 50 nails were hammered and the marginal product of the fourth and fifth hours of work is 40 and 20 nails,respectively.Diminishing returns will be experienced in the _____ hour.
A)second
B)third
C)fourth
D)first

Question

Quizplus · Accepted Answer

Diminishing returns occur when the marginal product decreases as additional units of input are added. The marginal product of the fourth hour of work is 40, which is higher than the marginal product of the fifth hour, which is 20. This indicates that the fifth hour is experiencing diminishing returns.

A Carpenter Hammers Nails Each Day at Work