"Diminishing marginal returns" refer to a situation in which the
A) average product of the next worker hired is less than the average product of the previous worker hired.
B) marginal product of the next worker hired is less than the marginal product of the previous worker hired.
C) average cost of the next worker hired is less than the average cost of the previous worker hired.
D) marginal cost of the next worker hired is less than the marginal cost of the previous worker hired.

Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when adding an additional factor of production results in a smaller increase in output than the previous addition, which is accurately described in option B regarding the marginal product of workers.

"Diminishing Marginal Returns" Refer to a Situation in Which the