In Exhibit 73, diminishing marginal returns set in with the addition of the
A)first worker
B)third worker
C)fourth worker
D)fifth worker
E)seventh worker

Question

In Exhibit 7­3, diminishing marginal returns set in with the addition of the
A)first worker 
B)third worker 
C)fourth worker 
D)fifth worker 
E)seventh worker

Quizplus · Accepted Answer

Diminishing marginal returns set in with the addition of the fourth worker, as the additional output (10 units) is less than the additional input (20 units) compared to the third worker. Adding more workers after the fourth worker would result in further diminishing returns.

In Exhibit 7­3, Diminishing Marginal Returns Set in with the Addition

In Exhibit 73, Diminishing Marginal Returns Set in with the Addition