Exhibit 7-5 Workers and output data $$\begin{array} { | c | c | }
\hline \text { Laborers } & \begin{array} { c }
\text { Total } \
\text { Product }
\end{array} \
\hline 0 & 0 \
1 & 8 \
2 & 20 \
3 & 25 \
4 & 28 \
5 & 29 \
\hline
\end{array}$$
-In Exhibit 7-5, diminishing returns set in when the ____ worker is hired.

Question

Exhibit 7-5 Workers and output data $$\begin{array} { | c | c | } 
\hline \text { Laborers } & \begin{array} { c } 
\text { Total } \
\text { Product }
\end{array} \
\hline 0 & 0 \
1 & 8 \
2 & 20 \
3 & 25 \
4 & 28 \
5 & 29 \
\hline
\end{array}$$
-In Exhibit 7-5, diminishing returns set in when the ____ worker is hired.

Quizplus · Accepted Answer

Diminishing returns set in when the marginal product of an additional worker starts to decrease. The marginal product decreases after the third worker is hired (from 12 to 5).

Exhibit 7-5 Workers and Output Data -In Exhibit 7-5, Diminishing Returns Set in When the ____