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

Quizplus · Accepted Answer

Diminishing marginal returns occur when the addition of a worker results in a smaller increase in output than the previous worker. The marginal product of the third worker is 36 (126-90), which is less than the marginal product of the second worker, 50 (90-40), indicating diminishing returns start with the third worker.

Answer the Question on the Basis of the Following Output