Refer to Scenario 7.7 below to answer the question(s) that follow.
SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively.
-Refer to Scenario 7.7. Diminishing returns to labor set in with the ________ worker.
A) first
B) second
C) third
D) fourth

Question

Quizplus · Accepted Answer

Diminishing returns to labor set in with the third worker, as evidenced by the decreasing marginal increase in the number of lawns mowed. The increase from one to two workers is 5 lawns, from two to three workers is 3 lawns, and from three to four workers is only 2 lawns, indicating diminishing returns starting with the addition of the third worker.