The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.

-Refer to the table above.When the ________ is employed,diminishing marginal returns set in.

Question

The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.
 
-Refer to the table above.When the ________ is employed,diminishing marginal returns set in.

Quizplus · Accepted Answer

Diminishing marginal returns occur when adding an additional factor of production results in a smaller increase in output. Without the specific table, the general principle is that diminishing marginal returns set in after a certain point of adding workers or resources, which in this case is indicated to be after the fourth worker is employed.

The Following Table Shows the Total Output, Number of Workers