The following graph represents the total production of a firm on the y-axis, and the number of employees on the x-axis.

-Refer to the figure above.Diminishing marginal returns begin to occur when ________.

Question

The following graph represents the total production of a firm on the y-axis, and the number of employees on the x-axis.
 
-Refer to the figure above.Diminishing marginal returns begin to occur when ________.

Quizplus · Accepted Answer

Diminishing marginal returns occur when adding an additional factor of production results in a smaller increase in output. Without the specific figure, a general understanding is that diminishing returns typically begin when the addition of more workers leads to less efficient production due to factors like overcrowding or limited resources. In this context, if diminishing marginal returns are said to begin after a certain number of workers are hired, it implies that the addition of the next worker (in this case, the third) does not increase output by as much as the previous worker did, indicating the start of diminishing returns.

The Following Graph Represents the Total Production of a Firm