Exhibit 7-5 Workers and output data

In Exhibit 7-5, diminishing returns set in when the ____ worker is hired.
A) first
B) second
C) third
D) fourth

Question

Exhibit 7-5 Workers and output data

In Exhibit 7-5, diminishing returns set in when the ____ worker is hired.
A) first 
B) second 
C) third 
D) fourth

Quizplus · Accepted Answer

Diminishing returns set in when the third worker is hired, as output increases at a smaller rate when the third worker is added compared to the first and second workers. Adding more workers beyond the third results in a decrease in output, indicating negative returns.

Exhibit 7-5 Workers and Output Data