Justin owns a home entertainment installation company. One employee can complete two installations per month; two employees can complete five installations, three employees can complete nine installations, four employees can complete twelve installations, and five employees can complete eleven installations. Diminishing marginal returns begin with the _____ worker.

Question

Quizplus · Accepted Answer

Diminishing marginal returns begin when adding an additional worker results in a smaller increase in output than the previous worker added. The third worker adds 4 installations (from 5 to 9), but the fourth worker adds only 3 installations (from 9 to 12), indicating diminishing returns start with the fourth worker.

Justin Owns a Home Entertainment Installation Company