Suppose that a restaurant experiences diminishing returns to cooks. If hiring the second cook added 4 additional meals per hour, then hiring the third cook will:

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The concept of diminishing returns implies that as more units of a variable input (in this case, cooks) are added to a fixed input (the kitchen), the additional output (meals prepared) generated by each new unit of input will eventually decrease. Therefore, if the second cook added 4 additional meals per hour, hiring the third cook will add less than 4 additional meals per hour due to the diminishing returns.

Suppose That a Restaurant Experiences Diminishing Returns to Cooks