Table 6-1
Table 6-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May.
-Refer to Table 6-1.Diminishing marginal returns sets in when the ________ worker is hired.

Question

Table 6-1
  Table 6-1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May.
-Refer to Table 6-1.Diminishing marginal returns sets in when the ________ worker is hired.

Quizplus · Accepted Answer

As seen in the table, the total product of mushrooms increases with each additional worker, but at a decreasing rate. The marginal product of the third worker is lower than that of the second worker, indicating that diminishing marginal returns have set in. Therefore, the best choice is B, the third worker.

Table 6-1 Table 6-1 Shows the Technology of Production at Production