The following question are based on the following diagram illustrating the weekly average and marginal products for salespersons in the appliance department of a large department store:

-Diminishing marginal returns set in when adding the ________ salesperson.
A) first
B) second
C) third
D) fourth
E) fifth

Question

The following question are based on the following diagram illustrating the weekly average and marginal products for salespersons in the appliance department of a large department store:
 
-Diminishing marginal returns set in when adding the ________ salesperson.
A) first 
B) second 
C) third 
D) fourth 
E) fifth

Quizplus · Accepted Answer

Diminishing marginal returns set in when the addition of new inputs (in this case, salespersons) to a fixed production process (like a sales team with limited resources or market area) results in smaller increases in output. This can happen at different points depending on the context, but typically, it's not with the very first few hires, as they tend to significantly boost productivity. The concept suggests that after a certain point, each additional salesperson contributes less to overall sales than the previous one. The third option is a common point in examples to illustrate when diminishing returns start to become noticeable, but it's important to note that the specific point can vary in real-world scenarios.

The Following Question Are Based on the Following Diagram Illustrating