Exhibit 6-5 Workers and output data $$\begin{array} { | c | c | }
\hline \text { Laborers } & \begin{array} { c }
\text { Total } \
\text { Product }
\end{array} \
\hline 0 & 0 \
1 & 8 \
2 & 20 \
3 & 25 \
4 & 28 \
5 & 29 \
\hline
\end{array}$$ In Exhibit 6-5, diminishing returns set in when the ____ worker is hired.

Question

Exhibit 6-5 Workers and output data $$\begin{array} { | c | c | } 
\hline \text { Laborers } & \begin{array} { c } 
\text { Total } \
\text { Product }
\end{array} \
\hline 0 & 0 \
1 & 8 \
2 & 20 \
3 & 25 \
4 & 28 \
5 & 29 \
\hline
\end{array}$$ In Exhibit 6-5, diminishing returns set in when the ____ worker is hired.

Quizplus · Accepted Answer

Diminishing returns occur when the addition of an extra factor of production results in a smaller increase in output than the previous increase. In the table, this begins when the third worker is hired, as the increase in total product from two to three workers (5 units) is less than the increase from one to two workers (12 units).

Exhibit 6-5 Workers and Output Data In Exhibit 6-5, Diminishing Returns Set in When the ____