Refer to the data provided in Table 10.2 below to answer the following question(s).
Table 10.2 $$\begin{array} { c c c }
\begin{array} { c }
\text { Total Labor Units } \
\text { (employees) }
\end{array} & \begin{array} { c }
\text { Total Product } \
\text { (frames per day) }
\end{array} & \begin{array} { c }
\text { Price per } \
\text { Frame }
\end{array} \
\hline 0 & 0 & \$ 10 \
1 & 10 & \$ 10 \
2 & 30 & \$ 10 \
3 & 55 & \$ 10 \
4 & 70 & \$ 10 \
5 & 82 & \$ 10
\end{array}$$
-Refer to Table 10.2. Diminishing returns to labor start with the ________ worker.
A) second
B) third
C) fourth
D) fifth

Question

Refer to the data provided in Table 10.2 below to answer the following question(s).
Table 10.2 $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Total Labor Units } \
\text { (employees) }
\end{array} & \begin{array} { c } 
\text { Total Product } \
\text { (frames per day) }
\end{array} & \begin{array} { c } 
\text { Price per } \
\text { Frame }
\end{array} \
\hline 0 & 0 & \$ 10 \
1 & 10 & \$ 10 \
2 & 30 & \$ 10 \
3 & 55 & \$ 10 \
4 & 70 & \$ 10 \
5 & 82 & \$ 10
\end{array}$$
-Refer to Table 10.2. Diminishing returns to labor start with the ________ worker.
A) second
B) third
C) fourth
D) fifth

Quizplus · Accepted Answer

Diminishing returns to labor occur when adding an additional unit of labor results in a smaller increase in output than the previous unit of labor added. From the table, the increase in total product goes from 20 frames (from 1 to 2 workers) to 25 frames (from 2 to 3 workers), then drops to 15 frames (from 3 to 4 workers). Thus, diminishing returns start with the fourth worker.

Refer to the Data Provided in Table 10 -Refer to Table 10