Use the table below to answer the following question.
Table 10.2.4

-Refer to Table 10.2.4.The table gives the total product schedule of workers who harvest corn.Diminishing marginal returns begin when the ________ is hired.
A)1st labourer
B)2nd labourer
C)3rd labourer
D)4th labourer
E)There are no diminishing marginal returns since total product always rises.

Question

Use the table below to answer the following question.
Table 10.2.4
 
-Refer to Table 10.2.4.The table gives the total product schedule of workers who harvest corn.Diminishing marginal returns begin when the ________ is hired.
A)1st labourer 
B)2nd labourer 
C)3rd labourer 
D)4th labourer 
E)There are no diminishing marginal returns since total product always rises.

Quizplus · Accepted Answer

Diminishing marginal returns occur when the addition of an extra unit of labor results in a smaller increase in output than the previous unit added. This typically happens when there is a fixed amount of another factor (like land or machinery). In this case, it starts with the 4th laborer, as indicated by a decrease in the rate of increase in total product compared to when the 3rd laborer was added.

Use the Table Below to Answer the Following Question