Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. $\begin{array} { |c | c| }
\hline \text { Nuriber of Warkers } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 40 \
\hline 2 & 90 \
\hline 3 & 126 \
\hline 4 & 150 \
\hline 5 & 165 \
\hline 6 & 180 \
\hline
\end{array}$ Diminishing marginal returns become evident with the addition of the

Question

Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. $\begin{array} { |c | c| } 
\hline \text { Nuriber of Warkers } & \text { Units of Output } \
\hline 0 & 0 \
\hline 1 & 40 \
\hline 2 & 90 \
\hline 3 & 126 \
\hline 4 & 150 \
\hline 5 & 165 \
\hline 6 & 180 \
\hline
\end{array}$ Diminishing marginal returns become evident with the addition of the

Quizplus · Accepted Answer

Diminishing marginal returns become evident when the increase in the output becomes smaller as the number of workers increases. Looking at the table, we can see that the addition of the third worker leads to an increase of 36 units of output, which is smaller than the increase of 50 units when the second worker was added. Therefore, the third worker marks the point where diminishing marginal returns become evident.

Answer the Question on the Basis of the Following Output