-The table above shows the total product schedule for Rick's Lawn Service, a garden-care company. Increasing marginal returns
A) occur as long as output increases.
B) occur at all levels of employment.
C) end when the second worker is hired.
D) never occur.
E) end when the fourth worker is hired.

Question

-The table above shows the total product schedule for Rick's Lawn Service, a garden-care company. Increasing marginal returns
A) occur as long as output increases. 
B) occur at all levels of employment. 
C) end when the second worker is hired. 
D) never occur. 
E) end when the fourth worker is hired.

Quizplus · Accepted Answer

Increasing marginal returns end when the addition of a new worker results in a smaller increase in output compared to the previous worker added. This typically happens before reaching the point of diminishing marginal returns, where adding more workers leads to a decrease in the efficiency of production. Without the specific data from the table, the general concept indicates that increasing marginal returns end when each additional worker contributes less to output than the worker before, which is often before reaching the peak efficiency point in a production process.

-The Table Above Shows the Total Product Schedule for Rick's