Exhibit 6-5 Workers and output data In Exhibit 6-5, diminishing returns set in when the ____ worker is hired.

Question

Exhibit 6-5  Workers and output data  In Exhibit 6-5, diminishing returns set in when the ____ worker is hired.

Quizplus · Accepted Answer

Diminishing returns occur when adding an additional worker results in a smaller increase in output than the previous worker. In this case, adding the third worker results in a smaller increase in output than adding the second worker, indicating that diminishing returns have set in.

Exhibit 6-5 Workers and Output Data in Exhibit 6-5, Diminishing