(Table) Based on the table, John's Salsa Company faces diminishing marginal returns when the _____ employee is hired.
$\begin{array}{|c|c|}
\hline \text { Labor } & \begin{array}{c}
\text { Total } \
\text { Product }
\end{array} \
\hline 1 & 9 \
\hline 2 & 20 \
\hline 3 & 33 \
\hline 4 & 40 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

Diminishing marginal returns occur when the addition of an extra unit of labor results in a smaller increase in output than the previous unit. From the table, the increase in total product from the third to the fourth employee is smaller (7 units) compared to the increase from the second to the third employee (13 units), indicating diminishing marginal returns when the fourth employee is hired.

(Table) Based on the Table, John's Salsa Company Faces Diminishing