Table 2.3

-Refer to Table 2.3. The principle of diminishing returns first occurs when how many workers are hired?

Question

Table 2.3
 
-Refer to Table 2.3. The principle of diminishing returns first occurs when how many workers are hired?

Quizplus · Accepted Answer

The principle of diminishing returns first occurs when the marginal product of labor decreases. From the table, the marginal product of labor for the fourth worker is only 30, whereas the previous worker had a marginal product of 40. This indicates that adding another worker would result in diminishing returns, making it the best choice to stop hiring additional workers.

Table 2.3 -Refer to Table 2.3. the Principle of Diminishing Returns First